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Legal Expert Explains Why Ripple Will Always Back XRP

A pro-XRP lawyer known for advocating for the cryptocurrency has outlined reasons why he believes Ripple would not abandon the XRP token. 

Lawyer Proclaims That Ripple Is Committed To XRP

Pro-XRP lawyer and Managing Partner of the Deaton Firm, John E. Deaton has taken to X (formerly Twitter) to assuage concerns raised about Ripple’s commitment and plans for the XRP token. 

Following the recent announcement of XRP’s expansion into Dubai after gaining approval from the Dubai Financial Services Authority (DFSA), Deaton boldly stated in his post that Ripple was not planning to ditch the XRP token and would not be for years. He said that the crypto payments network had a strong financial responsibility to the token, having invested billions in XRP. 

“As I’ve said for more than 3 years, Ripple is not going to abandon XRP. It has a fiduciary duty not to,” Deaton stated. 

Deaton highlighted Ripple’s financial journey revolving around the XRP token. He stated that in its Series A funding in 2015, Ripple was valued at $128 million. In Series B, the crypto payments network’s value rose again in the following year to $410 million and by 2020, Ripple had attained a value of $10 billion in its Series C valuation. 

Deaton also mentioned Ripple’s Series C buyback valuation last year, which saw the crypto network purchasing its Series C shares at a 50% higher price. 

According to Deaton, Ripple’s growing value and large-scale investments regarding XRP are proof enough that the crypto network would continue its support for XRP.

The pro-XRP lawyer disclosed that Ripple owned $48 billion to $50 billion worth of XRP, which makes it inconceivable for the crypto network to abandon XRP. He also stated that Ripple has more to gain than lose, especially if the XRP token price surges to $2. 

“Ripple’s pre-IPO shares clearly trade at a valuation significantly less than $15B. Owning 48B-50B XRP makes it insane to abandon XRP. If #XRP reaches $2, Ripple has an asset valued at $100B,” Deaton stated. 

Ripple XRP price chart from Tradingview.com

XRP Enthusiast Question Price Standstill After Major Milestones

While many XRP community members have commemorated the recent successes in the XRP ecosystem, an XRP enthusiast has chosen to voice out concerns about the lingering question of why the price of XRP has not been affected by its new achievements. 

XRP Cryptowolf took to X on Thursday to publish XRP’s newest development of partnering with the National Bank of Georgia (NBG) and why the token has not shown any significant price surges following the announcement. 

“Anyone else wondering why $XRP didn’t skyrocket to the news of Ripple partnering with a central bank?” XRP Cryptowolf stated. 

Additionally, following John Deaton’s statement that Ripple would not abandon the XRP token, an XRP community member disclosed that the XRP token had shown only a slight price change when a larger surge was expected.

“And yet here we are up 3 pennies haha any other coin would have jumped $15 bucks in a day with this kind of news,” an XRP community member stated.

While the present price of XRP has displayed a slower price growth than its past, many crypto enthusiasts believe that the cryptocurrency’s ongoing legal battle with the United States Securities and Exchange Commission (SEC) has been the primary source of its growth stunt. 

In response to XRP Cryptowolf’s question about the slack in the price of XRP, a community member stated that “for XRP to truly be free and demonstrate its potential, it will only happen after it clears all the SEC lawsuits.”

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Pro-XRP Lawyer Reveals The Impact Of SEC’s Lawsuit Against Ripple

A pro-XRP lawyer has highlighted more casualties and negative impacts the regulatory authority has inflicted on XRP and its investors as well as individuals and businesses associated with the cryptocurrency. 

So while Ripple has stated it has lost over $200 million in its fight against the US SEC, it seems that is not the only loss that has been incurred in the drawn-out battle. 

SEC Allegedly Damaged 75K XRP Followers

John E. Deaton, a pro-XRP lawyer has taken to X (formerly Twitter) to publicly admonish the United States Securities and Exchange Commission (SEC) for its series of legal actions and enforcements against XRP, the native token of Ripple Labs. 

Deaton has been a strong advocate for XRP since its fight against the US SEC began in 2020, and the cryptocurrency enthusiast and lawyer has actively participated in the community, airing out his views in defense of the cryptocurrency and its value as a global payment asset. 

In a recent post, Deaton stated that the US SEC has negatively affected thousands of XRP investors and users and these people have been protesting against the SEC’s actions toward the ecosystem for three years.

“The SEC harmed a lot of innocent people in the process. 75K investors, users, developers, and small businesses have been screaming the above for 3 years,” Deaton stated. 

According to a civil filing, the SEC has destroyed more than $15 billion worth of assets owned by innocent holders of XRP who had acquired the token on secondary marketplaces.

Ripple And SEC Legal Battle Developments

RealClearPolicy (RCPC), an American policy website, recently published an article titled “The SEC is not King” on Thursday, September 30. 

In an X repost, Deaton acknowledged the article which highlighted significant aspects of the Ripple and SEC legal case from when the regulatory body filed a lawsuit against the crypto firm earlier in 2020, alleging that Ripple was selling unregistered security offerings. 

Ripple had aggressively defended itself against the SEC and achieved a partial victory after Judge Analisa Torres ruled in favor of Ripple and rejected the SEC’s allegations that sales of XRP tokens on exchanges are security sales. 

In a possible attempt to salvage its reputation and also gain the upper hand against XRP, the SEC filed an interlocutory appeal to reevaluate the Judge’s ruling and its case against the token. In light of this, Deaton published a blog post titled “The Irony of Interlocutory Appeal” last week, castigating the SEC’s appeal scheme to potentially delay the litigation.

The US SEC has also been struck by a blow that may put a dent in its case with XRP. The defense team of Ripple recently exposed a pile of internal SEC documents and secret positions about the token which could significantly undermine the SEC’s argument that XRP should be treated as a security. 

This recent development has thrown a curveball in the ongoing legal battle between the US SEC and XRP, raising questions about the SEC’s intentions for the crypto industry and its method of handling cryptocurrencies.

Ripple XRP price chart from Tradingview.com (Pro-XRP lawyer SEC)

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Pro-XRP Lawyer John Deaton Reveals The Countries Topping The 75,000 Holder List

Over the course of Ripple’s legal battle with the United States Securities and Exchange Commission (SEC), John Deaton has grown to become one of the most prominent voices in support of the crypto firm. The result of this was a list containing 75,000 potential intervenors, all of which hold XRP.

Up until now, the regional composition of this 75,000-holder list has been unknown. But Deaton has finally revealed which countries are leading the pack as ‘potential intervenors.’

The United States Leads The 75,000 XRP Holder List

In a tweet shared on the X (formerly Twitter) platform, Deaton revealed to his more than 292,000 followers that the United States made up the majority of the 75,000 XRP holder list. The tweet highlighted that US holders currently make up 53% of the list, making it the leading region.

Going forward, the pro-XRP lawyer points to the United Kingdom as having the second-largest holder base on the list. This is then followed by Australia, which the lawyer excitedly reveals has moved up to the third position as of the last time he checked the holder list. However, Deaton explained that Australia’s lead over Canada in the fourth place only comes down to a difference of around 11 holders.

The lawyer’s tweet comes in response to an announcement from the Wave of Innovation official X handle that Deaton would be the keynote speaker of an upcoming event. The event totaled “XRP Gold Coast” would run from March 22-24 in 2024, and Deaton was picked as the keynote speaker due to his “significant contributions to the XRP community through his legal work and advocacy efforts.”

Deaton went on to highlight his pleasure of being the keynote speaker at this event by pointing out Australia’s growing dominance on the 75,000 XRP holder list. “I could not say no, nor pass on the opportunity to meet many of them,” he tweeted.

Ripple (XRP) price chart from Tradingview.com (XRP holders John Deaton)

Representing The Interest Of Investors

John Deaton’s rise to fame, especially among crypto investors, first came when the lawyer began advocating for XRP holders. While Ripple Labs battled the SEC in the courtrooms, Deaton was the attorney of choice for XRP investors who wanted to make their voices heard in the case.

Support for Ripple had grown rapidly as many referred to the regulator’s actions as an overreach. Meanwhile, the number of XRP investors throwing their hats in the ring grew to over 75,000 on Deaton’s list.

According to the attorney, being on this ’75K List’ meant that XRP investors could potentially be able to seek reimbursement if the price of XRP were to suffer as a result of the regulator’s actions.

The legal battle that began in 2020 is currently still ongoing with the SEC filing an interlocutory appeal in response to Judge Analisa Torres’s ruling back in July. So whether or not there will be any reimbursement for XRP holders impacted by the regulator’s actions remains to be seen.

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Pro-XRP Lawyer John Deaton Says He Is Willing To Bet That Ripple Will Win SEC Appeal

Popular XRP advocate and notable attorney John Deaton recently predicted a comfortable appeal victory by Ripple against the United States Securities and Exchange Commission (SEC). The Managing Partner of ‘The Deaton Law Firm’ says he is willing to bet big on the exchange emerging victorious on appeal.

Founded Belief Or Mere Speculation?

John Deaton’s willingness to bet on an uncertain court judgment follows a recent thread penned by digital asset enthusiast and Australian-based lawyer Bill Morgan. According to the thread, Judge Analisa Torres did not err in her summary judgment decision. 

Morgan was of the opinion that the Securities and Exchange Commission (SEC) classified sales of XRP by Ripple into three unique classes; institutional sales, programmatic sales, and other XRP distributions. Following the classification, Judge Torres evaluated each class by applying the popular Howey test. 

After evaluation, the Judge discovered major differences in each class. For instance, the Judge discovered that every institutional investor signed agreements with Ripple and expected to earn profits from the firm’s activities. 

While institutional investors entered contracts with Ripple, programmatic sales on exchanges did not require the signing of contracts, and purchasers, therefore, did not expect to make profits directly from Ripple’s efforts. 

Therefore, according to Morgan, Judge Torres ruled that the sale of XRP to institutional investors amounted to a sale of securities, while that of programmatic sales on virtual exchanges was not. 

Ripple (XRP) price chart from Tradingview.com

Deaton Ready To Go All In For Ripple

Reacting to the thread, John Deaton commended Bill Morgan and noted that Judge Torres did not differentiate between Ripple’s XRP sales merely out of “thin air.” He stated that the Judge considered each sale the SEC alleges as securities “and applied the Howey test.” Therefore, given his confidence in the decision, he was willing to wager “significant funds that she doesn’t get reversed on appeal.”

While Deaton may have cause to believe in a favorable appeal outcome, recent developments may instigate some doubts in his prediction. Recently, US District Judge Jed Rakoff, who oversees the SEC’s lawsuit against Terraform Labs, rejected the approach used in Judge Torres’s ruling. This creates a certain unpredictability in the outcome of the upcoming SEC appeal. 

In the interim, SEC’s Chair, Gary Gensler, has suggested that an appeal against the decision in the Ripple lawsuit is under strong consideration. While Gensler’s comment does not expressly guarantee an appeal, however; it indicates that the US SEC has not conceded a partial defeat in the suit. 

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ALGO Stands Tall: Coinbase Legal Officer Discusses Its Continued Listing

Chief Legal Officer of Coinbase, Paul Grewal, spoke to lawyer John Deaton, host for the Twitter-based podcast CryptoLaw, regarding the exchange’s decision to continue offering Algorand (ALGO). 

The U.S. Securities and Exchange Commission (SEC) earlier classified Algorand as a security in its charges against the Bittrex crypto exchange.

Notably, Coinbase delisted XRP based on regulatory scrutiny in 2021. But it has yet to do the same with ALGO, even as the cryptocurrency faces a similar issue.

Paul Grewal Explains Coinbase Position On Algorand

In his interview, John Deaton discussed the confusion among XRP’s community regarding Coinbase’s approach to making and reviewing listing decisions. 

Paul Grewal stated that secondary sales of assets do not make them securities. However, Deaton believes that the same argument regarding secondary sales applies to XRP tokens. 

According to Deaton, XRP’s suspension from trading on Coinbase was due to the argument that the token is a security under U.S. law. 

However, Coinbase still offers ALGO to traders, frustrating XRP holders who feel penalized. In response, Grewal reiterated Coinbase’s commitment to upholding the rule of law equally for everyone. He sympathized with the plight of XRP holders who believe that a double standard applies to various situations. 

Further, Grewal states that laws and circumstances changed and referred to Coinbase’s amicus brief supporting Ripple in November 2022. He believes crypto exchanges and projects must “team up to withstand a solid adversary,” the U.S. SEC. 

According to Grewal, the SEC is not “above mistakes” in interpreting the law, and the recent enforcements from the body are politically motivated. 

Teamwork Necessary Moving Forward

These remarks come after a meeting between Paul Grewal and Ripple’s General Counsel, Stuart Alderoty. John Deaton remarked that the meeting showed two great General Counsels leading the front line in the battle to improve crypto regulation in the United States. 

John Deaton had recommended in a tweet in March 2023 that crypto companies facing SEC enforcement actions need to share ideas. He believes they can create coordinated strategies to defend themselves against the commission and its “excesses.”

Also, Attorney Bill Morgan reacted to the meeting between Coinbase and Ripple’s top legal officers. He believes nothing is “better than teamwork against a common enemy.” Interestingly, Ripple and Coinbase faced regulatory pressure from the SEC on different occasions. 

The SEC charged Ripple for offering XRP tokens as unregistered securities in 2020. While the case continues, the commission served a Wells Notice to Coinbase in February 2023.

Coinbase XRP

Meanwhile, some XRP enthusiasts have called on Coinbase to relist XRP. According to XRPcryptowolf, Coinbase must relist XRP if they “desire Ripple’s help to defeat the SEC.”

Featured image from Coinbase and chart from Tradingview

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Stop Protecting American Public, Pro-XRP Attorney Tells SEC Chair

The pro-XRP Attorney and crypto lawyer John Deaton has told SEC Chair Gary Gensler to retreat his regulatory actions. The attorney demands that the commission stop protecting Americans by lashing on crypto companies.

The United States has increased the tension in its crypto industry through unclear regulatory measures. Crypto regulators like the Securities and Exchange Commission (SEC) also affect crypto firms with multiple enforcement actions. 

Related Reading: Bitcoin To Drop Further? Whales Show Signs Of Dumping

Stop Protecting American Public While Harming Crypto Firms, John Deaton 

In a statement via Twitter in response to Gensler’s post appreciating SEC’s staff for upholding the commission’s mission, Attorney Deaton asked SEC boss Gensler to stop protecting the American public.

The SEC has enacted enforcement actions against several crypto entities through its forceful regulatory measures. Some include the Ripple (XRP) blockchain, Paxos (Issuer of BUSD stablecoin), Bittrex, Coinbase, and others.

In December 2020, the SEC sued Ripple Labs and some of its executives over the sale of XRP tokens under the Howey Test, stating that the asset passed the definition of an investment contract.

Attorney Deaton maintained that XRP is not a security but a digital currency, and the lawsuit has been taking several turns and is still ongoing.

The activity of the US SEC on crypto firms in the US has evoked a lot of reactions, especially from top firms such as Coinbase. However,  the commission has maintained that its actions are measures to protect Americans.

Moreover, in a video, last month, the SEC chair maintained that intermediaries for investment contracts should comply with securities laws and register fully with the SEC. 

He also said that the law only cares about “what something is and not what you call it” As such, digital asset investment firms that list securities must comply with the investor protection obligations like other firms.

SEC Pushing Legal Boundaries With Ripple Lawsuit

Crypto lawyer John Deaton mentioned earlier that the SEC is pushing legal boundaries by claiming that Ripple violated securities laws.

According to a Bloomberg Law publication, Deaton stated that the SEC’s allegation against XRP is beyond legal contemplation and court rulings on securities.

Stop Protecting American Public, Pro-XRP Attorney Told SEC Chair

The lawyer mentioned that the US Supreme Court in 1946 defined security in its ruling on SEC v. Howey case. So, the ruling could not account for the complex digital assets with encrypted computer code after almost a century.

Featured image from Thinking Crypto and chart from Tradingview

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Cryptocurrency Exchange Bittrex Files For Bankruptcy Amid SEC Probe

The popular crypto trading exchange Bittrex filed for Chapter 11 bankruptcy protection in the US Bankruptcy Court for the District of Delaware. This move comes three weeks after the United States Securities and Exchange Commission filed a lawsuit against it.

The US SEC charged Bittrex and its co-founder and former CEO, William Shihara, for allegedly operating an unregistered national securities Exchange, clearing agency, and broker house. It also filed another charge against Bittrex Global. 

Bittrex Trading Platform Bankruptcy Details

According to the filing, the crypto exchange has over 100,000 creditors. Its assets were between $500 million and $1 billion, while the liabilities were between $500 million and $1 billion.

The bankruptcy filing covered different entities under Bittrex, including, Seattle-based entity Bittrex Inc, Bittrex Global GmbH, 2 entities in Malta, and an affiliated entity Desolation Holdings LLC. But Bittrex’s global entity based in Liechtenstein was not part of the bankruptcy filing. 

Regarding its creditors, the bankruptcy filing revealed that OFAC topped the list among others with a claim of $24.2 million. Other Bittrex creditors include a crypto wallet with a claim of $14.5 million.

Cryptocurrency Exchange Bittrex Files For Bankruptcy Amid SEC Probe

Notably, FinCen is the top 50 creditor with a claim of $3.5 million, while the US SEC has an “undetermined amount of claims.” 

SEC Lawsuit And Bankruptcy Filing Follows Bittrex Plans To Wind Down

Bittrex exchange has had it very rough in 2023. The firm first reduced its workforce in February, laying off 83 employees. According to the trading platform, the market crash and the collapse and bankruptcy of many crypto firms in 2022 affected its operations. 

Some of the crypto exchanges and lending platforms that were also affected by the market were Celsius, Voyager Digital, and the FTX exchange crash that wreaked havoc in the industry. 

Later in March, Bittrex announced plans to wind down its US operations by April 30 due to regulatory uncertainty. In the announcement, Bittrex assured customers their funds were safe but advised US customers to withdraw them before the slated date. 

By April 17, the US SEC filed a lawsuit against the firm, alleging it operated an exchange for buying, selling, and trading crypto asset securities without proper registration. Three weeks after the lawsuit, the crypto exchange filed for bankruptcy.

Notably, while responding to a Twitter post about the lawsuit, the lawyer representing thousands of XRP holders, John Deaton, blamed the SEC Chair Gary Gensler for Bittrex’s decision.

Featured image from Pexels and chart from Tradingview.com

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Pro-XRP Lawyer Weighs In On The Ongoing Lawsuit Ruling

Bill Morgan has weighed in on discussions regarding the XRP lawsuit while the crypto community awaits the judge’s ruling. Morgan responded to a Twitter user, Marc Fagel, who’s been debating the XRP lawsuit with John Deaton.

Morgan noted that Judge Torres was clear regarding her line of judgment on the Ripple case. Notably, the main issue in the case is whether or not Ripple sold XRP as a security.

Bill Morgan on Judge Torres

In Bill Morgan’s opinion, Judge Torres will base her judgment on facts regardless of the SEC’s broad and undefined position. Also, Ripple argues that it did not require registration since it didn’t sell XRP as an investment contract.

However, the SEC took a broader stand that all XRP sales are securities, relying on the first allegation that Ripple distributed XRP through statutory underwriters.

Pro-XRP Lawyer Weighs In On The Ongoing Lawsuit Ruling

Morgan is unsure how Judge Torres will decide the case and why the SEC overstretches its positions towards XRP sales in the secondary market.

Morgan noted that the SEC argues that Ripple’s XRP continuous offering in the secondary market violates securities law, stretching toward ODL customers who are not investors. In addition, he said that all XRP sales occur in the secondary market since Ripple has only offered XRP to ODL partners since 2020.

He also responded to the founder of Crypto Capital, Justin Bons’ comment that Ripple’s defense hinges on XRP decentralization. According to Morgan, Ripple’s defense does not hinge on the XRP ledger’s decentralization but on the Howey test application. 

However, the court is yet to decide the factual relevance of decentralization based on the Howey test.

Congress Should Prohibit Regulators From Working At Firms They Regulated

Recall that John Deaton called out the SEC on May 5 for its broad and undefined position on the XRP lawsuit. Deaton further noted the SEC couldn’t tag XRP as security since the sales do not meet the prongs in the Howey Test.

The attorney weighed in again today, noting specific things that should change in the SEC. The US-based lawyer said Congress should pass a law prohibiting regulators from leaving to work at a firm they previously regulated for at least three years.

Featured image from Pexels and chart from Tradingview

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Pro-XRP Lawyer Castigates The SEC’s Argument Saying It’s Unfounded And Absurd

Pro-XRP lawyer representing thousands of XRP holders as Amicus Curiae has slammed the US SEC’s position in the ongoing Ripple lawsuit.

In a tweet, John Deaton claims the SEC undermined its once credible case by quoting an unrelated legal document. Deaton believes the document, dubbed ECF 640, supported his claim when the SEC stated that the XRP purchase was an investment in a “common enterprise.”

According to Deaton, the SEC will still regard XRP as a security even if other countries recognize it as a legal tender.

SEC’s XRP Theory Is Indefinable In Time And Space, Says Deaton

Deaton argued that the SEC cannot boycott the Howey test by alleging that every XRP sale (before, now, and future) meets all the test’s prongs. He noted that no underlying asset in an investment contract was ever tagged security since the Howey test started 76 years ago.

The legal expert further explained that no investment contract exists without a legal relationship between the buyer and promoter. Deaton’s tweets suggest the SEC’s argument is absurd and lacks credibility. 

Deaton cited his Amici motion to the federal judge presiding over the Ripple case, Judge Torres. He addressed the SEC’s argument as a shorthand and analytically lazy contention, slamming the agency for tagging every XRP sale, from its ICO to the present, financial security. 

In the lawyer’s opinion, the scope of the SEC’s arguments is overstretched and indefinable in time and space.

Community’s Responses to Deaton’s Argument

Deaton’s tweets attracted other crypto proponents. While responding, a Twitter user @Kashta9 said he thinks the SEC’s position in the lawsuit is that all XRP sales, including those in the secondary market, are investment contracts. Other respondents said they don’t care about anybody’s opinion but the judge’s.

Related Reading: Why Is Bitcoin And Crypto Up Today?

Deaton ended his argument by expressing his confidence in Judge Torres’ ability to recognize and act according to the massive public interest in the XRP lawsuit.

Pro-XRP Lawyer Castigates The SEC's Argument Saying It's Unfounded And Absurd

The Ripple lawsuit is among the most viral topics in the crypto industry, with many anticipating a ruling in Q2 2023. A total of 75,000 XRP holders from the United States and 143 countries joined the Ripple lawsuit. However, no one can predict if it will become security until the judge pronounces judgment.

Featured image from Pexels and chart from TradingView