John Deaton calls Ripple XRP case “the most significant non-fraud SEC enforcement action in modern history”
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- Pro-XRP attorney John Deaton recently commented on the SEC’s request to Coinbase to halt trading of all tokens except Bitcoin.
- Deaton believes that the US financial regulator has an anti-crypto stance and the XRP ruling protected the ecosystem from the SEC’s full force.
- Deaton argues every coin is in danger and the XRP ruling is significant to all market participants and projects in crypto.
XRP holder community is awaiting the US Securities and Exchange Commission’s (SEC) next steps to appeal versus Judge Torres’ ruling on XRP status as a security. Amidst the anticipation surrounding the ruling, pro-XRP attorney John Deaton has made more comments on the recent information about the SEC lawsuit against Coinbase.
Deaton explained the relationship between the XRP ruling and the crypto ecosystem, arguing that no cryptocurrency is safe from the SEC’s anti-crypto stance.
XRP ruling and its impact on cryptocurrencies listed on Coinbase
Coinbase CEO Brian Armstrong told the Financial Times in an interview that the US SEC requested the exchange to halt trading for all cryptocurrencies except Bitcoin. Armstrong said that the SEC believes every asset other than Bitcoin is a security and that the regulator refused to explain how the agency arrived at such a conclusion.
The request was to delist from the biggest cryptocurrency exchange in the world every asset other than Bitcoin. Deaton used these words by Armstrong to remind the XRP community how important Judge Torres’ ruling is. According to Deaton, all cryptocurrencies in the ecosystem are “in danger” of the full-force of the SEC coming at them, if XRP was proven to be an investment contract/ security.
The ruling makes it clear that XRP is not a security in itself, however the altcoin can be considered as a security depending on the circumstances of the transaction or sale. Deaton believes that this XRP ruling is a win for the crypto ecosystem and that the SEC vs Ripple case is “the most significant non-fraud SEC enforcement action in modern history”, since 1946.
Deaton’s argument for why “every coin is in danger”
John Deaton had already warned the crypto community nearly a year ago that the SEC’s lawsuit against Ripple could emerge as a groundbreaking one, as the regulator’s argument could be applied to every single asset. Deaton wrote to the SEC, asking the regulator to limit their claims against Ripple, in the way the firm sells XRP.
The SEC filed its first amended complaint against Ripple on February 19, in the southern district of New York, and the regulator’s response was to refer to XRP as a “digital asset security.” This is where, Deaton explains, the regulator clarified their stance on cryptocurrencies and shifted its stance from 2013 to the present, referring to assets as “securities” instead of referring to the circumstances of sale of the asset.
