A recent lawsuit filed by the United States Securities and Exchange Commission (SEC) against Ripple Labs, Inc. has been making headlines in the cryptocurrency world. Ripple, the company behind the XRP cryptocurrency, has been accused of selling unregistered securities to investors. The lawsuit has been ongoing since December 2020, with Ripple and the SEC trading legal blows back and forth. Now, a pro-Ripple lawyer has made a shocking revelation that could turn the tide of the case.
The Ripple Lawsuit
The SEC lawsuit against Ripple alleges that the company sold over $1.3 billion worth of unregistered securities in the form of XRP. The SEC claims that Ripple and its executives engaged in an ongoing illegal securities offering from 2013 to 2020. Ripple has argued that XRP is not a security but rather a currency or digital asset that should not be regulated by the SEC.
The Pro-Ripple Lawyer
John Deaton is a lawyer who has been defending the interests of XRP investors in the SEC lawsuit against Ripple. He has been an outspoken proponent of XRP and Ripple, arguing that XRP is not a security and that the SEC has overstepped its regulatory authority. Deaton has filed a motion to intervene in the SEC lawsuit on behalf of XRP investors and has also filed a class-action lawsuit against the SEC on behalf of XRP holders.
The Bombshell Revelation
In a recent filing, Deaton revealed new evidence that he claims could sway the case in Ripple’s favor. The evidence consists of documents from foreign regulators and government agencies that have already determined that XRP is not a security. Deaton argues that these documents prove that the SEC’s case against Ripple is baseless and that XRP should not be classified as a security.
Ripple has responded to the bombshell revelation with confidence, stating that the new evidence reinforces their argument that XRP is not a security. Ripple has also emphasized that the SEC has failed to provide any clear guidance on how cryptocurrencies should be regulated, leading to confusion and uncertainty in the industry.
Potential Impact on the Cryptocurrency Industry
If the court ultimately rules in favor of Ripple, it could have significant implications for the cryptocurrency industry as a whole. A ruling that XRP is not a security would provide clarity on how cryptocurrencies should be regulated and would likely lead to more mainstream adoption of cryptocurrencies. It could also pave the way for other cryptocurrencies to argue that they are not securities and should not be subject to SEC regulation.
The new evidence presented by John Deaton is a significant development in the Ripple lawsuit, and it could potentially sway the outcome of the case in Ripple’s favor. However, it is ultimately up to the court to decide whether or not XRP is a security. The case is still ongoing, and it is unclear when a final decision will be made. In the meantime, the cryptocurrency industry will be closely watching the Ripple lawsuit for any further developments.