Crypto lawyer John E Deaton provided a big update on the situation around SEC and Ripple in his latest viral tweet last night. The update highlighted Judge Torres’ pivotal decision in the case, with Deaton emphasizing her background as a Democratic judge appointed by President Barack Obama.
Her ruling explicitly stated that “XRP itself is NOT a security,” effectively legitimizing XRP trading on cryptocurrency exchanges like Coinbase. This decision carries considerable weight across partisan lines and potentially sets a precedent for other cryptocurrencies facing similar regulatory challenges.
The situation takes an interesting turn with Chris Larsen, one of Ripple’s executives previously sued by the SEC for personal XRP sales, recently donating millions of XRP to Vice President Kamala Harris through Coinbase. This transaction highlights a striking contradiction, as Coinbase itself faces SEC scrutiny for allegedly operating an illegal business model by facilitating token transfers, including XRP.
Adding to the complexity, Deaton pointed out that the SEC had approved Coinbase’s IPO two years earlier, deeming it in the public’s interest despite being fully aware of the exchange’s business model. Deaton likened the regulatory situation to “the possessed girl in the movie, The Exorcist,” highlighting what he sees as confusion and inconsistency in the regulatory approach.
The lawyer also highlighted his extensive involvement in supporting XRP holders, noting that Judge Torres referenced nearly 4,000 affidavits he submitted on their behalf. Despite providing these services pro bono, Deaton faced criticism from Senator Elizabeth Warren during a debate. Nevertheless, he remains committed to representing XRP holders through the SEC’s appeal process, whether as a lawyer or a private citizen.
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Deaton concluded by expressing concerns about America’s position in cryptocurrency innovation, criticizing SEC Chairman Gary Gensler’s approach while emphasizing the need for clearer regulatory frameworks to maintain the United States’ competitive edge in emerging technologies. He concluded with “Someone has to speak for token holders and it’s an honor for me to continue to be that person because America must be a leader when it comes to innovation.”
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