- Crypto Law Founder John E Deaton tweeted he will stand against the US SEC for claiming secondary market transactions are securities.
- James K Filan reported Deaton will file an Amicus Brief in Zakinov versus Ripple case.
- Deaton will argue against plaintiffs claiming Ripple sold XRP as an unregistered security.
Crypto Law founder and Deaton Law Firm Managing Partner John E Deaton tweeted that he will be defending secondary market transactions of a token against the US SEC. He added:
Whether it’s the SEC Gov or a Plaintiff’s Attorney making the absurd argument that secondary market transactions of a token are also securities simply b/c it may have been previously offered or sold in a way that violated Section 5 of the Securities Act, I’ll see you in court.
The former federal prosecutor and defence lawyer, James K Filan shared that Deaton will be filing a motion to file an Amicus Brief in Zakinov versus Ripple lawsuit in California, U.S. The plaintiffs claimed that Ripple sold XRP as an unregistered security, asking the court to certify a class of all XRP holders who either purchased, now hold, or sold XRP at a loss.
Moreover, Filan reported that the proposed class would include XRP holders globally including the 75,890 XRP holders worldwide who disagree with the plaintiffs in Zakinov and claim that XRP is not a security.
Additionally, the proposed class is not limited to direct sales by Ripple and includes all sales of XRP, including secondary sales and international sales in countries where XRP has already been determined not to be a security.
Filan said that Deaton will argue that the court should not certify the class due to these conflicts and since there is only a small number of XRP holders who claim XRP is an unregistered security while so many XRP holders worldwide claim it’s not.
Deaton will argue that those small numbers of plaintiffs in Zakinov cannot fairly represent so many who disagree with them, including XRP holders in places where XRP is not even considered a security, Filan concludes.
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