Pro-XRP Lawyer Castigates The SEC’s Argument Saying It’s Unfounded And Absurd
May 05 2023 - 1:30PM
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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.” “The quoted legal document supports [what I said] by
stating that even if some country recognizes XRP as fiat currency
in the future, it would still be considered a security.” If El
Salvador 🇸🇻 recognized XRP as legal tender, like #BTC – the SEC
claims it still a security. 🤦♂️ https://t.co/fI1Ofn23iN — John E
Deaton (@JohnEDeaton1) May 5, 2023 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. Related Reading: Bitcoin
On-Chain Transactions Reach New Heights, What’s Fueling the Surge?
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.
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
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