Deaton discusses how industry leaders, the SEC and competitors are collaborating on Ripple
Lawyer and XRP supporter John Deaton recently shared that it is difficult to accurately measure the damage that the SEC lawsuit has done to Ripple and XRP. In the year In 2012, when the founders of Ripple created XRP, it was not a stable coin, and the global payment market was open to innovation.
At that time, Ripple was deciding to focus on smart contracts or payments. In the end, Ripple chose to focus on cross-border payments, which it thinks makes sense given the size of the market and the lack of a stable coin at the time.
In the year In 2019, Coinbase listed XRP and promoted it as a way to send money globally, quickly and cheaply. Later that year, MoneyGram began using XRP for transfers. But just 18 months later, the SEC filed suit, alleging that all of XRP—however purchased—is an unregistered security.
After the lawsuit, Coinbase canceled XRP, and MoneyGram switched to using XLM instead. But does Deaton really have a legal difference between using XRP or XLM for payments? However, the creator of XLM, Jed McCaleb, is the co-founder of Ripple. Deaton argued that the SEC's lawsuit was too broad. It also suggests that many of the people who pushed the case against Ripple later worked for Ripple's competitors.
“But when you look at how this case was presented, including massive conflicts of interest, and the circumstances in which the people behind the lawsuit went to help or work for Ripple / XRP's competitors, you shouldn't be a fan to call it,” he concluded.
Ripple Vs SEC Saga Continues:
The legal battle between Ripple and the US Securities and Exchange Commission (SEC) has had a significant impact on XRP since the lawsuit began in December 2020. A key moment came on July 13, 2023 when Judge Annalisa Torres ruled that XRP was not a security. It was an important regulatory decision. However, the SEC filed an appeal on October 17 challenging parts of the ruling. The SEC has until January 15, 2025, to file an opening brief with the matter in public view.
