Attorney and XRP community supporter John Deaton recently provided profound insights on the SEC's lawsuit against Ripple. He candidly stated that it is difficult to accurately quantify the substantial damage this lawsuit has caused to Ripple's business. Looking back to 2012, when Ripple's founding team launched XRP, stablecoins had not yet emerged, and the global payment market was still full of expectations for innovation. Ripple faced a key decision: should it focus on smart contracts or concentrate on payment solutions? Ultimately, they chose the cross-border payment track. Deaton pointed out that the lack of stablecoins at that time made this choice seem reasonable and pragmatic.
From the highlights of 2019 to the SEC's crackdown
2019 was a remarkable year for XRP. Coinbase listed it and promoted it as a "fast and cheap way for international remittances," and MoneyGram also introduced XRP for cross-border transfers that same year. However, the good times didn't last. Just 18 months later, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple on the grounds of unregistered securities. This move triggered a series of chain reactions: Coinbase promptly delisted XRP, and MoneyGram turned to Stellar's XLM. Deaton questioned whether there is any substantial legal difference between using XRP or XLM for payments. He also noted that XLM's founder, Jed McCaleb, is actually a co-founder of Ripple.
Conflict of interest and widespread controversy
Deaton sharply criticized the scope of the SEC's lawsuit. He believes that the SEC's actions are not only overly broad but also demonstrate a clear conflict of interest. He further pointed out that many of the individuals pushing for the lawsuit against Ripple later worked for Ripple's competitors. This situation raises questions about whether there are deeper commercial games at play.
"Even if you are not a fan of XRP, just having a basic understanding of the case's background, and the connections between the lawsuit participants and competitors, is enough to provoke outrage," Deaton summarized.
The future of XRP - uncertainty in regulation and law
Since the case began in December 2020, the legal battle between Ripple and the SEC has lasted for years, deeply impacting XRP's market performance and regulatory status. On July 13, 2023, a historic ruling declared that XRP is not a security, giving the cryptocurrency market a shot in the arm. However, the SEC appealed part of the ruling on October 17 of the same year, making the case a focal point in the industry once again. According to legal procedures, the SEC must submit a statement by January 15, 2025, and this protracted legal battle will continue to attract public and market attention.
The fate of Ripple and XRP seems to symbolize the regulatory struggle within the cryptocurrency industry. In this dramatic struggle, Deaton's analysis provides us with a window to understand the complex situation behind it. What are your thoughts on Ripple's future? Are you choosing sides or waiting to see? Regardless, come and follow the expert to witness the ever-changing drama in the cryptocurrency world; perhaps the next hot take will be the answer you've been waiting for!
