Legal expert says “SEC was overstretching its arguments” in XRP lawsuit

John E. Deaton shared his point of view to explain how the SEC was already wrong with its allegations against the Ripple company.

Ripple is a San Francisco-based Fintech company. In the Crypto sector, Ripple is known as an XRP token project company. XRP token runs on XRP Ledger, a Proof-of-stake (PoS) model-based blockchain algorithm. Ripple company uses XRP token to provide cross-border payment services to small & big companies at very less cost. Since Dec 2020, Ripple vs US securities agency fight is going on over the nature of the XRP token. 

On 17 Jan 2023, A popular US attorney John Deaton in the Crypto Community talked about the Ripple vs SEC lawsuit to explain how Ripple is standing in a better position over the United States Securities and Exchange Commission (SEC). 

Legal expert said that the SEC overstretched its arguments against the Ripple company. In particular, Deaton reminded the SEC allegation that Ripple was a common enterprise. 

In response, Ripple’s attorney submitted 3,000 affidavits to confirm that the majority of the early buyers of the XRP token were unaware of the Ripple company and secondly buying the XRP tokens doesn’t mean that any XRP holds an interest right in the Ripple company & vice versa. 

Further, Deaton reminded the point that XRP token holders/users/investors invested in XRP token as an alternative payment digital currency, which happened independently of Ripple company. 

“We receive financial benefits from #XRP completely independent of Ripple and we utilize #XRP as a substitute for fiat – to name a few of the things we proved to the Court.”

Deaton also raised questions over the court ruling development without any involvement of a single XRP holder directly or indirectly, if Ripple was a common enterprise. 

Read also: Former BoE official says risks and costs of rolling out CBDC are higher than benefits