On the heels of litigation against Solana for promoting unregistered security, a Ripple lawyer has envisaged the ripple effects of the lawsuit on the entirety of the crypto market.
As the crypto world grapples with different issues, a class action lawsuit has been filed against Solana Labs. It is accused of generating illegal profits by advertising unregistered securities.
The outcome of this litigation could have a significant impact on the worldwide cryptocurrency market. Solana (SOL), Solana Labs’ native token, may be impacted in the future. It will trade with the uncertainty of whether it is the Security or not.
Meanwhile, Ripple Labs and its executives are being investigated by the Securities and Exchange Commission (SEC) in the United States. The authority claims that XRP, Ripple’s native token, is security.
However, John Deaton, the XRP token holders’ lawyer in the dispute, has highlighted concerns about the crypto industry’s future. In a tweet, he stated that if XRP is declared a “security,” hundreds of class lawsuits will be filed. He went on to say that this includes not only tokens and exchanges but also cryptocurrency promoters.
Deaton stated that XRP has already been sued in a case identical to Solana’s. He emphasized that class action waivers are included in the agreement for exchanges. If those waivers are enforced, organizations such as Ripple, Ethereum, Stellar, and Algorand may have a target. Deaton underscored the importance of the situation.
He also stated that the SEC is alleging that the XPR token is a security in their complaint. Apart from Ripple, this also includes secondary market sales.
Meanwhile, on July 1, Roche Freedman LLP and Schneider Wallace Cottrell Konecky filed a class action against Solana. From March 24, 2020, the Solana Foundation, Solana Labs, Multicoin Capital Management, Anatoly Yakovenko, Kyle Samani, and FalconX are accused of marketing unregistered securities SOL.
