John Deaton: XRP Individual Investors Lost Over $15 Billion Due to SEC’s Abuse of Power: John E. Deaton, a prominent pro-crypto lawyer and U.S. Senate candidate in Massachusetts, has publicly criticized the U.S. Securities and Exchange Commission (SEC) for its handling of the Ripple (XRP) case. According to Cointelegraph, Deaton claims that the SEC’s “gross overreach and abuse of power” cost XRP retail investors over $15 billion. His remarks were made in a post on X (formerly Twitter), where he expressed outrage on behalf of the 75,000 XRP holders he represented in the lawsuit.
Key Points from John Deaton‘s Statement
1. $15 Billion in Investor Losses:
Deaton claims that the SEC’s actions against Ripple (XRP) have resulted in significant financial harm to retail investors, with losses totaling over $15 billion. He believes the SEC’s lawsuit caused unnecessary damage to these investors, many of whom were holding XRP as a long-term investment.
2. SEC’s Alleged Abuse of Power:
The lawyer accused the SEC of “gross overreach” in its enforcement actions, asserting that the regulatory body has disregarded the law in its pursuit of a legal victory. He highlighted that the SEC has shown little regard for the impact its decisions have had on XRP investors.
3. Personal Advocacy for XRP Holders:
Deaton noted that he personally represented 627 XRP holders from Massachusetts and contacted the SEC on their behalf, urging the commission to clarify that XRP tokens themselves are not securities. However, Deaton claimed that SEC lawyers refused his request and responded by attacking him personally.
4. Judicial Support:
In the XRP case, Judge Analisa Torres sided with Deaton’s arguments, ruling that XRP tokens are not securities. Deaton has used this ruling to argue that the SEC’s approach was legally flawed and harmful to investors.
5. Call for Accountability:
Deaton has called for the SEC to publicly apologize for its actions. If elected to the U.S. Senate, he has pledged to personally apologize to the affected XRP investors. His campaign emphasizes holding the SEC accountable for what he describes as its unjust treatment of retail investors.
Implications for the XRP Case and Regulatory Landscape
1. Investor Sentiment:
Deaton’s statements highlight the frustrations many XRP holders feel toward the SEC’s actions. Retail investors may view his advocacy as a critical voice in the ongoing debate about cryptocurrency regulation and enforcement.
2. Regulatory Overreach Concerns:
The allegations of overreach by the SEC echo broader concerns within the crypto community about the need for clearer regulatory guidelines. Deaton’s criticism underscores the tensions between regulators and cryptocurrency projects, which often face ambiguous regulatory standards.
3. Potential Policy Changes:
If elected to the U.S. Senate, Deaton has vowed to champion the cause of XRP investors and push for reforms in how the SEC handles cryptocurrency-related cases. His advocacy may influence future regulatory decisions and policy discussions regarding digital assets.
Conclusion
John Deaton’s criticism of the SEC and his claims of $15 billion in losses for XRP investors have sparked a new wave of debate about the role of regulators in the cryptocurrency space. As Deaton campaigns for a Senate seat, his stance on holding the SEC accountable and advocating for crypto investors may have a significant impact on the ongoing discussion surrounding cryptocurrency regulations and investor protection.
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