XRP hits $120B market cap amid SEC battle; global regulators like FinCEN and Japan classify it as a non-security.
SEC delayed action on XRP, despite its wide use in cross-border payments and acknowledgment by U.S. agencies since 2014.
Legal expert John Deaton leads XRP defense, uniting holders to challenge SEC’s overreach and promote regulatory fairness.
XRP has recently overtaken Solana (SOL) and Tether (USDT), climbed above $2, and approached a $120 billion market cap. This surge has prompted legal expert John Deaton to share insights about his journey with XRP and the broader implications of the SEC’s actions. His reflections shed light on the controversial legal battle surrounding XRP and its classification as a security.
https://twitter.com/JohnEDeaton1/status/1863313228178301182
Deaton’s Stance on XRP and the SEC’s Allegations
In December 2020, the SEC alleged that all XRP tokens were securities. Deaton, though holding minimal XRP at the time, sued the SEC, citing government overreach. He highlighted the absurdity of labeling XRP as illegal, especially for users on the XRP Ledger (XRPL) or those unaware of Ripple's leadership.
This position gained support from thousands of XRP holders who aligned with his legal battle. Deaton emphasized the SEC's inaction before the lawsuit, despite significant XRP activity.
For instance, companies like Spend the Bits and TapJets used XRP for business applications, while XRP facilitated cross-border payments for businesses such as MoneyGram. Yet, the SEC chose to intervene only in late 2020, despite years of acknowledgment from other U.S. entities.
Regulatory and Industry Context Surrounding XRP
XRP's legal status had been previously addressed by multiple U.S. agencies and international regulators. The U.S. GAO, in 2014, recognized XRP as a virtual currency. Similarly, in 2015, FinCEN classified XRP as a virtual currency, mandating Ripple's compliance with banking laws.
Globally, authorities in the U.K., Japan, and Singapore labeled XRP as a non-security token. Despite this, the SEC alleged otherwise, raising questions about its approach. Notably, prior to the lawsuit, Coinbase listed XRP after thorough legal scrutiny.
In meetings with the SEC, Coinbase confirmed that securities lawyers determined XRP was not a security. The SEC took no action, allowing XRP trading to expand. Meanwhile, SEC officials, including Jay Clayton, signed off on reports describing XRP alongside Bitcoin and Ethereum as virtual currencies.
Deaton’s Commitment to XRP Holders
Although initially a minor XRP investor, Deaton deepened his commitment during the lawsuit. He expressed solidarity with XRP holders who endured market instability due to regulatory uncertainty. His legal efforts showed broader concerns about fair regulatory practices and the need to address inconsistencies in the SEC’s enforcement.
