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HomeCrypto NewsMarketSpendTheBits is a Model Example Of Flaws With SEC Lawsuit, Says Deaton

SpendTheBits is a Model Example Of Flaws With SEC Lawsuit, Says Deaton


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The attorney again lambasts the SEC for its claims about XRP.

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Attorney John E. Deaton has asserted that the Bitcoin payments app based on the XRP Ledger, SpendTheBits, represents all that is wrong with the US Securities and Exchange Commission’s case against Ripple.

The attorney made this known in a Twitter thread on Sunday. It came in response to a report by The Crypto Basic that hinted at a SpendTheBits expansion to El Salvador.

According to Deaton, if he had to pick only one amicus brief for Judge Analisa Torres to read, it would be the SpendTheBits brief. The lawyer asserts that it may be the best at exposing the flaws in the SEC’s claims about XRP.

As elaborated by Deaton in the lengthy thread, as opposed to the SEC claim that XRP and the XRPL have no utility outside the efforts of Ripple, SpendTheBits founder Jaskaran Kambo started the payments app with no knowledge of or support from Ripple. The lawyer discloses that Kambo intimated that the payments app is a smaller alternative to Ripple’s On-Demand Liquidity (ODL) service, making it a potential Ripple competitor.

Consequently, the attorney bashes the SEC’s claims that XRP, no matter where it is used, how it is used, the solutions developed with it, and the persons who develop these solutions, will remain an investment in Ripple’s “common enterprise.” Deaton describes the SEC claims as “mind-boggling” and “outrageous.”

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He disclosed that it has become necessary to enlighten lawmakers on the fact that while a token can be packaged as an investment contract just like any other thing, that does not make the token a security, again citing the Howey case.

It is worth noting that, as reported, the over two-year-long legal battle is now awaiting the judge’s decision, as everything has been briefed. Today, Deaton, who represents thousands of XRP holders as a friend of the court, indicated that the judge could deny both summary judgment motions and send the case to a jury trial.

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Okoya David
Okoya David
Okoya David Kio is a crypto enthusiast passionate about understanding what makes the nascent market tick. When he's not pondering about cryptocurrencies, you might find him in a BP debate room trying to proffer solutions to age-old societal problems.

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