John Deaton, the founder of CryptoLaw and a famous XRP enthusiast, has taken to Twitter to share his take on another XRP SEC-related issue. Deaton believes the SEC's decision to subpoena the creator of the XRP ledger could be an attempt to stifle "innovation" in the cryptocurrency space.
Deaton recently responded to XRP haters on Twitter claiming that the SEC is right and believing that "XRP is clearly a security." He said he's encountered this sentiment lately and that he doesn't believe that XRP is a security.
Deaton's response to XRP haters on Twitter
Deaton tweeted that “all these XRP haters” who tweeted that the SEC will easily win the lawsuit against Ripple cannot provide a reasonable answer as to why they definitely think XRP is a security.
The CryptoLaw founder points out that the regulator could easily have attacked Ripple for the same reason in 2018, when the SEC lawyers conducted a thorough analysis of the token that Ripple Labs works with. The memo was dated June 13, 2018.
After the analysis, they allowed the fintech giant to continue its XRP sales and allowed Ripple to buy 9% stake in MoneyGram. More than that, they continue to “offload” XRP on them in public.
If XRP were clearly a security, US regulators wouldn't have been dealing with this lawsuit for two years and "wouldn't now be facing a fair-notice defense."
Deaton responded to @JayVTheGreat's tweet that he expects Ripple to lose by saying "I'm not so sure. XRP is still 50% higher than a year ago.”
SEC enforcement attorneys analyzed Ripple's XRP in a June 13, 2018 memo and did not recommend a cease and desist order or enforcement if Ripple does not stop selling illicit securities.
Ripple CEO expects the case to close this year
Earlier this week, during the World Economic Forum in Davos, Ripple CEO Brad Garlinghouse expressed hope that the judge will make a decision on the lawsuit later this year, likely in the first half of the year.
He said all the paperwork had been made available to the judge and now all that was left to do was wait and see. However, Garlinghouse stressed that he doesn't see much chance of reaching an agreement with the SEC as Ripple's only requirement here is to declare XRP a non-securities, which the SEC obviously won't accept.
