Ripple vs. SEC: Deaton Faults SEC for Acting Begrudgingly

The Securities and Exchange Commission’s (SEC) claims that all trades of XRP constitute securities is ludicrous, according to attorney John Deaton, the founder of Crypto Law. In the ongoing Ripple v. SEC litigation, Deaton, who is defending over 75,000 XRP holders, pointed out that the securities regulator lacked “good faith” to make the first assertion.

Sharing his thoughts via Twitter, Deaton said:

“I said the SEC lacks good faith to argue that each and every sale of XRP made by anyone from the beginning of time until the end of the world is a security.”

The Crypto Law creator asserts that if the Securities and Exchange Commission sticks with its defense that each XRP sale constitutes a security, it will lose its lawsuit against Ripple.

He said, “It’s an absurd argument that they will lose.”

SEC Is Obsessed with Ripple: Deaton

Following its initial coin offering (ICO) in 2013, the SEC asserts that Ripple broke American securities laws. Lawyer Deaton has consistently criticized the Securities and Exchange Commission for being vague about whether XRP sales qualify as securities. Sadly, the agency remains adamant that all XRP sales, including those made on secondary marketplaces, are securities.

As a result of the lawsuit, US-based exchanges delisted XRP because they were concerned that the SEC may pursue charges against them for supporting the trading of the coin. As a result, many XRP investors suffered significant losses as the value of the cryptocurrency fell.

In the ongoing Ripple v. SEC litigation, attorney Deaton sought on Monday to submit the eagerly awaited amicus curiae brief on behalf of more than 75,000 XRP investors.

Deaton claimed in the amicus brief that the SEC is so fixated on XRP that it does not give a second thought about the facts surrounding the offering. He continued by saying that the fixation had caused the SEC to avoid a proper Howey examination.

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