On April 26, a California federal court will hear oral arguments about certifying the class of XRP holders suing Ripple Labs for illegally marketing securities.
A fresh hearing is scheduled on April 26 at 1:30 p.m. PT (4:30 p.m. ET) in federal court in California for the class action lawsuit Zakinov v. Ripple.
At the center of the hearing will be oral arguments on the certification of the class of XRP holders suing Ripple. The judge has granted 500 members of the public internet access to the hearing.
The hearing is part of the class action lawsuit Zakinov v. Ripple, filed in 2020. The plaintiff, Bradley Sostak, owned XRP for two weeks and wants to represent all XRP holders who traded or held the cryptocurrency during the relevant period.
The lawsuit claims that Ripple Labs sold XRP as an unregistered security, violating the Securities Act and harming investors. The plaintiffs argue that XRP is a security and not a currency and that Ripple Labs failed to register it with the SEC as required by law.
Meanwhile, attorney John E. Deaton has filed a motion to submit an amicus brief on behalf of over 75,000 XRP holders. He aims to ensure that their interests are considered by the court, as the outcome of the case may affect their holdings. The court has not ruled on his motion yet.
This hearing’s conclusion could establish a precedent for future claims concerning cryptocurrency corporations and their treatment of digital assets. In a second case, the SEC accuses Ripple Labs of raising over $1.3 billion through an unregistered and ongoing digital asset securities issuance.
Ripple Labs denies the allegations and claims XRP is a decentralized digital asset used as a medium of exchange, not security.
The SEC’s case breaches due process and fair notice, according to the company’s motion to dismiss.
