Pro-XRP lawyer John E. Deaton likes to point out constantly via his X account that XRP is not a security and urges SEC to realize that as well in the ongoing legal battle with Ripple.
This time, John highlighted 3 articles/documents that SEC should read before judging XRP.
What you'll learn 👉
Key Documents That Challenge the SEC’s Position
John Deaton points to a 2018 legal article by former CFTC Chairman Christopher Giancarlo. Known as “Crypto-Dad” for his friendly approach to digital assets, Giancarlo clearly stated that XRP is not a security. His opinion carries weight because as the former head of the Commodity Futures Trading Commission, he knows exactly what makes something a commodity rather than a security.
In the Forbes article Deaton shared, Giancarlo explained that XRP doesn’t have the typical features of securities. He noted that XRP holders don’t primarily expect profits from other people’s work. Instead, XRP works more like a currency or commodity. This directly challenges how the SEC has been treating XRP in its case against Ripple.
Three things the folks at the SEC should read:
— John E Deaton (@JohnEDeaton1) March 13, 2025
1) @giancarloMKTS aka Crypto-Dad’s 2018 law article concluding XRP is NOT a security. Giancarlo is Former Chairman of the @CFTC and therefore, knows what a commodity is. 👇https://t.co/cHyPouzkQn
2) SEC enforcement lawyers wrote… https://t.co/orKT6DOngG
The second document Deaton highlighted is quite revealing – it’s an analysis by the SEC’s own enforcement lawyers from June 13, 2018. These SEC staff members reviewed XRP using the Howey test but didn’t conclude it was a security. They also didn’t recommend taking any action against Ripple, Brad Garlinghouse, or Chris Larsen.
Deaton also mentioned a letter from December 2020, written by former SEC Commissioner Joe Grundfest to Jay Clayton and other SEC leaders. In this letter, Grundfest pleaded with the SEC not to treat XRP differently from Ethereum. He warned that doing so would raise serious questions about the SEC’s fairness and motives.
Read also: XRP ETFs ‘Likely’ to Be Approved Very Soon—Here’s the Expected Date
The Ethereum Comparison in Settlement Talks
Reporter Charles Gasparino recently shared some inside information about the settlement talks between Ripple and the SEC. According to his sources, the SEC is now considering whether XRP’s current trading and real-world use make it more of a commodity than a security.
The comparison with Ethereum seems to be a major factor in these discussions. Gasparino pointed out that both ETH and XRP started in similar ways – both tokens helped fund the development of their platforms. Yet somehow, Ethereum avoided SEC enforcement while Ripple got sued.
SCOOP: Off of @EleanorTerrett's scoop from yesterday on the @Ripple – @SECGov settlement negotiations, one issue that is being weighed by the commission is whether $XRP continues to trade and have a utility that makes it more a commodity and not a security. I am told the…
— Charles Gasparino (@CGasparino) March 13, 2025
The apparent reason? The SEC believes Ethereum changed over time into a commodity. Now in the settlement talks, they’re comparing the two cryptocurrencies closely. The SEC already accepts that Ethereum trades as a commodity today. They’re now trying to figure out if they can say the same thing about XRP.
It seems increasingly likely that the SEC’s case against Ripple and XRP may be heading toward a resolution favorable to Ripple. Even observers without a stake in crypto or legal expertise can see the apparent inconsistencies in the SEC’s approach. With former regulators, internal SEC documents, and the Ethereum precedent all pointing in a similar direction, the pressure is building on the SEC to reconsider its position.
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