[ccpw id="39382"]

HomeCrypto NewsMarketAttorney Deaton Says SEC Is Not Telling the Truth About Its Major Focus In Lawsuit Against Ripple

Attorney Deaton Says SEC Is Not Telling the Truth About Its Major Focus In Lawsuit Against Ripple


Written By:


Deaton continues to taunt the SEC.

Attorney Deaton Says SEC Is Fibbing About Its Major Focus In Lawsuit Against Ripple

Following the SEC’s refusal to allow I-Remit and TapJets to file amicus briefs supporting Ripple in the ongoing lawsuit, the XRP community has examined the agency’s recent motion.

Surprisingly, some Ripple enthusiasts found something interesting in the motion, which borders on whether the SEC is only focused on proving Ripple’s XRP distribution as security, or all XRP sales, including secondary market sales.

While rejecting the new third-parties request to file amicus briefs in support of Ripple, the Securities and Exchange Commission said:

“Indeed, movants do not and cannot explain how Defendants being required to register their XRP distributions – the outcome the SEC is seeking to enforce – would prevent movants from using XRP or otherwise impact movants’ businesses.” 

XRP Community Reacts to the SEC’s Recent Motion 

The SEC’s comments have been a topic of discussion among Ripple enthusiasts.

Ripple enthusiasts were focused on the part where the SEC noted that Ripple’s XRP distribution is the outcome it wants to enforce. Based on the statement, many believe that the Securities and Exchange Commission is no longer committed to probing XRP sold on secondary markets.

Attorney Deaton Bashes the SEC

Commenting on the issue, attorney John Deaton, founder of Crypto Law, noted that the SEC’s recent statement contradicts what it stated in its summary judgment motion

“A purchase of XRP is an investment in a common enterprise with other XRP holders and with Ripple. All units of XRP are fungible with each other, and the price of all units of XRP rise or fall equally,” an excerpt of the SEC’s summary judgment motion stated. 

Attorney Deaton said the SEC indirectly implied that any purchase of XRP is a security that includes all XRP coins, including those obtained from secondary markets. 

Deaton, the attorney representing over 72,000 in a lawsuit against the SEC, added that the agency is falsely claiming that it is only concerned about Ripple’s XRP sales and not the crypto asset’s secondary market sales. 

According to Deaton, if the SEC’s claim were true, the agency would have gone through all Ripple’s transactions related to the company’s XRP sales. 

“Instead, they say all XRP sales but trust us, we will give exemptions in the secondary market,” Deaton concluded. 


Follow Us on Twitter and Facebook.

Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Ammara Mubin is a cryptocurrency reporter and trader with vast experience in the industry. Mubin has written several news stories related to the crypto industry, including non-fungible tokens (NFTs), decentralized finance (DeFi), fundraising, mining, etc. Her major focus is covering regulatory events that are capable of shaping the entire crypto ecosystem.

More from Author