Crypto Lawyer John Deaton Gives Update on Ripple vs SEC Case: Someone ‘Has to Speak’ for XRP Holders

Crypto lawyer John E Deaton provided a big update on the situation around SEC and Ripple in his latest viral tweet last night.

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.

Moreover, Judge Torres, a lifelong Democratic Judge, who was fought to be put on the bench by Senator Kirsten Gillibrand and appointed by former President Barack Obama, made a clear ruling that “XRP itself is NOT a security” and that sales of XRP, on exchanges like Coinbase, are completely legal. This decision is so impactful that one of Ripple's executives, Chris Larsen, who was personally sued by the SEC for his XRP sales, recently donated millions of XRP to Vice President Kamala Harris through Coinbase.

This transaction is particularly noteworthy because Coinbase is facing SEC allegations that it operates an illegal business model by facilitating token transfers, such as XRP, which are at the heart of this case. To further complicate matters, the SEC had approved Coinbase's IPO two years prior, deeming it in the public's interest despite being fully aware of the exchange's business model.

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.

Highlighting his extensive involvement in supporting XRP holders, Deaton noted 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. However, he remains committed to representing XRP holders through the SEC's appeal process, whether as a lawyer or a private citizen.

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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