Amid XRP Lawsuit, John E. Deaton rallies support following a ruling that exonerates Ripple of violating federal securities law.
In a recent development related to the ongoing legal conflict between Ripple Labs Inc. and the U.S. Securities and Exchange Commission (SEC), John E. Deaton, XRP Lawsuit attorney, enlisted thousands of potential amici to support XRP holders.
Judge Analisa Torres ruled that Ripple did not violate federal securities law by selling its XRP token on public exchanges, prompting Deaton’s appeal for support.
John E. Deaton Attacks SEC
Deaton, who has been outspoken in defending the rights of crypto investors, took to Twitter to announce that a growing number of individuals have joined his cause in the XRP Lawsuit against the SEC. At the time of his announcement, the number of Coinbase consumers willing to serve as amici was close to three thousand.
And just like that we are at 3135. People are tied of the SEC’s type of protection (ie the ⛽️ 💡 approach).
— John E Deaton (@JohnEDeaton1) July 17, 2023According to reports, the SEC Chairman Gary Gensler was dissatisfied with the judge’s ruling, specifically regarding the effect on retail investors in the XRP case. This gave Deaton’s efforts a boost.
The case’s background includes SEC allegations that Ripple’s sale of XRP constituted an unregistered offering of securities. However, Judge Torres ruled favor of Ripple, stating that the company’s XRP sales on public exchanges did not contravene federal securities law.
SEC Wins Partially in XRP Lawsuit
A SEC spokesperson, told Reuters that the agency was pleased with the portion of the ruling that held Ripple accountable for its $728.9 million in sales to hedge funds and other sophisticated purchasers.
Due to the ruling, Coinbase, the largest cryptocurrency exchange in the United States, has resumed trading XRP on its platform. Coinbase was among the first exchanges to delist the XRP coin following the SEC’s lawsuit against Ripple Labs in December 2020. Currently, XRP is trading at $0.7485.
John Reed Stark, former head of the SEC’s Office of Internet Enforcement, indicated that an appeal is probable in the XRP case.
