Key Takeaways:
- John Deaton reflects on his involvement with the SEC lawsuit against Ripple and XRP.
- XRP’s legal status has faced significant challenges despite international recognition.
- Deaton expresses support for XRP holders who persevered through the legal battles.
Crypto-friendly lawyer John Deaton recently shared his thoughts on the ongoing Ripple’s XRP saga, highlighting the legal battles and his personal involvement in the case against the SEC.
The overwhelming majority had assumed Deaton was a major holder of XRP; he, however, said Bitcoin accounted for 50% of his net worth at the time of filing and that Ethereum stood four times his investment in XRP. His motive to sue the SEC, therefore, did not involve personal interests but the unfairness of the SEC allegations.
Ripple’s Legal Battle Against the SEC
The backbone of Deaton’s argument is based on the 2020 lawsuit filed by the SEC that claimed Ripple’s XRP was a security. Despite early indications and international recognition, XRP was considered an illegal virtual currency by the SEC.
Deaton added that the utility of the XRP was pretty self-apparent, finding itself in usage by companies like Spend The Bits and TapJets for sending and paying bills. Japan had already announced it as a no-security token, following the same trend in the UK and Switzerland.
He mentioned in his post that the SEC was aware of the legal status of XRP, referencing past communications, including the results of a 2019 report from Coinbase’s legal team, concluding that XRP did not constitute a security. Still, the SEC went full force in 2020 and thus brought unprecedented market uncertainty to XRP holders.
Support for XRP Holders
More than the legal, the fight against the SEC with Deaton leading turned a moral one for rights on XRP holders. Many had written off Ripple in the cryptocurrency community due to the SEC move; he, nonetheless strongly believes in protection of one’s rights even if that was unpopular.
The feeling of solidarity came from 75,000 XRP holders who joined him in the fight, and although their initial motion was denied without prejudice, meaning they could refile at a later time, Deaton invested more in XRP to show support.
These words by Deaton denote deep conviction on his part that this fight in court was not about Ripple; it was also about protecting the broader crypto community against regulatory overreach. Whether one agrees with XRP’s role in the market or not, the fight by Deaton underlines something rather important-fairness in regulatory decisions.
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