In a publish on X, distinguished pro-XRP lawyer, John E. Deaton, make clear the intricate dynamics between the US Securities and Trade Fee (SEC) and Ripple’s rivals, suggesting a coordinated effort to undermine the corporate and its digital asset.
Deaton emphasised the intensive affect of the SEC’s lawsuit on Ripple, stating, “I do not believe one can properly estimate the damage to Ripple’s business caused by the sweeping nature of the SEC’s complaint against Ripple.” He underscored the historic context, noting, “You have to remember, in 2012, when Ripple founders created XRP, stablecoins did not exist and the cross border payments market was wide open and ripe for such disruptive technology. Clearly, it still is today.”
Insights from Deaton On The XRP Lawsuit
Reflecting on Ripple’s strategic selections throughout its early operations, Deaton recalled the numerous debate over whether or not Ripple ought to prioritize good contracts or funds. He identified an fascinating anecdote from that interval: Vitalik Buterin, the co-founder of Ethereum, was residing with Ripple’s then-CTO, Stefan Thomas.
Finally, Ripple opted to concentrate on cross-border funds, a transfer Deaton views as strategic given the absence of stablecoins and the huge potential of the worldwide cross-border funds market. “Considering stablecoins did not exist at the time and, considering just how large the global cross border payments market was and is, I can see why,” Deaton defined.
Supporting Ripple’s strategic focus, Deaton referenced knowledge indicating the exponential progress of cross-border fee flows. In 2022, these transactions surpassed $150 trillion, accounting for over 96% of the general cross-border fee quantity, with projections reaching $250 trillion by 2027. This progress is pushed by the enlargement of worldwide commerce, the rise of worldwide e-commerce, and elevated mobility of people and companies throughout borders.
Deaton additionally highlighted key milestones that originally bolstered the digital asset’s adoption. “After Coinbase listed XRP in February 2019, Coinbase promoted both XRP and USDC’s utility in moving money internationally, in seconds, and practically for free. In June 2019, MoneyGram began utilizing XRP,” he acknowledged.
However, the narrative took a dramatic flip when the SEC filed a lawsuit towards Ripple in December 2021. “After the lawsuit was filed by the SEC, Coinbase delisted XRP and MoneyGram switched from using XRP and began using XLM instead,” Deaton recounted.
Critiquing the SEC’s strategy, Deaton remarked, “Is anyone out there really going to argue that there was a real difference, UNDER THE LAW, between MoneyGram using XLM over XRP?” He identified the irony within the SEC’s actions, noting, “XLM’s founder, Jed McCaleb, is also the co-founder of Ripple & XRP!”
Deaton characterised the SEC’s grievance as excessively broad, stating, “The SEC’s Complaint against Ripple and XRP is, without question, the most grossly over-broad Complaint possibly ever filed by the SEC.” He additional accused the SEC of potential conflicts of curiosity, revealing that people concerned within the lawsuit subsequently aligned themselves with Ripple’s rivals. “Then those same people who pushed for the case against Ripple to be filed, went on to work with or for Ripple’s competitors,” he asserted.
Addressing skepticism about his motivations, Deaton clarified his monetary pursuits and independence. “First, as I disclosed in FEC filings, 80% of my net worth is in BTC. Second, when Eleanor Terrett and Charles Gasparino did their big write-up on the case in November 2021, they wrote: ‘Deaton is certainly no Ripple fanboy. He is critical of the fact that Ripple itself has sold about $800 million …’”
He concluded, “But when you look at the circumstances surrounding how this case was filed, including the massive conflicts of interests, and the fact that people behind the lawsuit went on to help or work for competitors of Ripple, you don’t have to be a fan to call it out.”
At press time, XRP traded at $2.12.
Featured picture from YouTube, chart from TradingView.com
