Expert: if the court rules against Ripple, the entire cryptocurrency market will suffer

A legal expert has warned that an unfavorable decision on the US Securities and Exchange Commission’s (SEC) lawsuit against Ripple will have a negative impact on the entire market of so-called altcoins.

John Deaton, managing partner of Deaton Law Firm, is confident that the outcome of the SEC’s lawsuit, which claims that XRP is a security, will actually determine whether almost all other altcoins are securities.

«Given that Congress [США] is not going to clarify the regulation, Judge Torres' decision in the Southern District of New York will determine whether or not the SEC will have jurisdiction over existing altcoins.

Not only does the SEC claim that the way Ripple offers and sells XRP is illegal, but also that all XRP are unregistered securities. If the SEC’s claim is recognized, almost every other altcoin will be recognized as a security."

Thus, a similar fate awaits the developers of Solana (SOL), Solana Labs, whose lawsuit claims that the ninth largest crypto asset is a security. Deaton is confident that there will be more such lawsuits against crypto companies: «This is just the beginning if XRP is eventually recognized as a security. Most likely, dozens, if not hundreds of class actions will be filed — not only against exchanges (Coinbase has already been sued), but also against the promoter/publisher of the altcoin.»