The Ripple-SEC Battle Takes a Dramatic Turn
The ongoing legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs has taken a dramatic turn with pro-XRP lawyer John Deaton’s recent statements. Deaton, the founder of Crypto Law US and a prominent voice in cryptocurrency advocacy, has challenged the SEC’s reach beyond U.S. borders, sparking a debate on the legalities of XRP sales worldwide.
Challenging SEC’s Jurisdiction
John Deaton has challenged the SEC’s bold attempts to seek disgorgement for Ripple’s XRP sales outside the United States. Drawing on the precedent set by the U.S. Supreme Court’s Morrison decision, Deaton argues that the SEC’s jurisdiction does not extend to Ripple’s international transactions, especially in jurisdictions where local regulators declare XRP a non-security.
International Perspective on XRP
As the SEC’s lawsuit hinges on the classification of XRP as a security, Deaton’s focus on international regulators’ stance is crucial. In the UK, the Financial Conduct Authority (FCA) has classified XRP as an exchange/utility token, and the Japanese Financial Services Agency (FSA) also does not consider XRP a security. This international regulatory landscape contrasts sharply with the SEC’s current position and supports Deaton’s argument against the SEC’s overreach.
Ripple’s Strong Position Amidst SEC’s Scrutiny
With the SEC’s aggressive pursuit of disgorgement for XRP sales, Deaton’s commentary underscores Ripple’s potential for a favorable outcome. According to Deaton, the court’s goal is not to punish Ripple in a non-fraudulent case but to rectify any proven harm to investors—a scenario that seems increasingly unlikely given the current evidence and international regulatory landscape.
Hot Take: John Deaton’s Stand Against SEC’s Overreach
The ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has reached a critical point with John Deaton challenging the SEC’s jurisdiction beyond U.S. borders. His analysis suggests that most of Ripple’s sales subject to disgorgement could be excluded based on geography alone, supported by international regulatory stances that contrast sharply with the SEC’s position. This move underscores Ripple’s potential for a favorable outcome amidst the SEC’s aggressive pursuit of disgorgement for XRP sales.
By
By
By
By
By
By