- A hearing on whether XRP is a security will hold in a California federal court.
- The plaintiff seeks to represent all XRP holders in the class action against Ripple.
- Lawyer John Deaton filed a motion for XRP holder voices to be heard.
The XRP community, closely following the action against Ripple Labs, is set to witness a crucial hearing today. It is a class certification case to answer whether Ripple’s token, XRP, is a security.
According to the official notification, plaintiff Bradley Sostak is seeking to represent all XRP holders who either owned the cryptocurrency and sold it at a loss or still own it today. Sostak argues in the lawsuit that Ripple’s token is a security and that the blockchain firm violated federal securities laws by selling XRP without appropriately registering it.
John E. Deaton, a lawyer and crypto enthusiast actively involved in the case, filed a motion for leave to file an amicus brief on behalf of over 75,000 XRP holders, which would allow their voices to be heard before the court. However, the judge has not yet ruled on this motion.
Notably, the hearing, scheduled for 1:30 p.m. PT (4:30 p.m. ET) on Wednesday, April 26, will hold in the California federal court. Additionally, the judge has opened online access to 500 members of the public through a login notice.
Experts have postulated that the outcome of Ripple’s multi-year legal tussle could significantly impact the crypto industry by setting a precedent. They believe a judgment against Ripple or a large settlement is imminent if the plaintiff in today’s case successfully gets the class certified.
Nonetheless, lawyer Deaton has said he is confident that the XRP holders will prevail since Ripple has not violated any laws selling XRP.