XRP holders lawsuit against Ripple goes to federal court today, what to expect

Ripple proponent attorney John Deaton informed the community of XRP holders that there is a hearing of a class action lawsuit against the payment giant in Federal Court today. XRP holders who hold the token or sold it at a loss have filed the class action against Ripple and the judge did not allow amicus counsel to participate in the hearing. 

Also read: XRP price gears up for likely massive upswing, what to expect

Zakinov v. Ripple lawsuit hearing in Federal Court

The hearing of Zakinov v. Ripple class action lawsuit is about arguments from XRP holders that have slammed the cross-border payment remittance firm with a lawsuit. Plaintiff Bradley Sostak is one of the XRP holders, taking part inof the action and he firmly believes that the token is a security. 

Sostak has asked to be the lead plaintiff in the class action and has urged the court to create a class of all XRP holders who have purchased, hold or sold XRP tokens at a loss. The list of XRP holders including the 75,890 participants who side with Ripple in its argument against the US financial regulator, the Securities and Exchange Commission. 

The latter group has sided with the giant in its defense that “XRP” is not a security. 

The hearing is key to XRP holders as it is not limited to the direct sales of Ripple and covers secondary and international sales, including nations where the altcoin is classified as a “non-security.”

Impact of the hearing on XRP holders

Two distinct groups of XRP holders, ones who sided with Ripple in its lawsuit against the SEC and the group that slammed the firm with a class action lawsuit are both watching the hearing intently. 

The court’s ruling will likely have an impact on both groups and the entire community of holders. The lawsuit does have components similar to the SEC’s litigation against Ripple, therefore the judge’s ruling on whether Ripple should be prosecuted for its sales, primary and secondary, of the (Security or Non-security) XRP tokens would influence the asset’s price and the sentiment of its holders. 

At press time, XRP price has yielded nearly 2% gains for holders and the asset is in an uptrend. The lawsuit is likely to drag for weeks or months on end, prior to its resolution, according to Huber, an XRP community member.