XRP Lawsuit: Deaton Reveals How Industry Leaders, SEC, and Competitors Unite Against Ripple

Attorney and $XRP advocate John Deaton recently shared that it’s hard to truly measure the damage the SEC’s lawsuit against Ripple and XRP has done to Ripple’s business. Back in 2012, when Ripple’s founders created XRP, stablecoins didn’t exist and the global payments market was wide open for innovation.

At the time, Ripple was deciding whether to focus on smart contracts or payments. Ultimately, Ripple chose to focus on cross-border payments, which he said made sense given the size of the market and the lack of stablecoins at the time.

In 2019, Coinbase listed XRP and promoted it as a way to send money internationally quickly and cheaply. Later that year, MoneyGram began using $XRP for remittances. But just 18 months later, the SEC filed a lawsuit, claiming that all XRP—regardless of how it was purchased—was an unregistered security.
Following the lawsuit, Coinbase delisted XRP and MoneyGram switched to using XLM instead. But Deaton asked, is there really a legal difference between using XRP or XLM for payments? However, XLM’s creator, Jed McCaleb, is also a co-founder of Ripple. Deaton argued that the SEC’s lawsuit was too broad. He also pointed out that many of the people who pushed the lawsuit against Ripple went on to work for Ripple’s competitors.

“But when you consider the circumstances surrounding how this lawsuit was filed, including the significant conflicts of interest and the fact that the people behind it have gone on to help or work for Ripple/XRP competitors, you don’t have to be a fan to be vocal,” he concluded.
The Ripple and SEC saga continues

The legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has had a huge impact on $XRP since the case began in December 2020. A pivotal moment came on July 13, 2023, when Judge Analisa Torres ruled that XRP is not a security, a significant regulatory decision. However, the SEC appealed on October 17, challenging parts of the ruling. The SEC is required to file its opening brief by January 15, 2025, keeping the case open to the public.