Attorney Deaton highlights another progress made in the Ripple v. SEC lawsuit.
In a tweet yesterday, Pro-XRP attorney John Deaton revealed a major win XRP community members recorded in the ongoing lawsuit between Ripple and the SEC.
According to attorney Deaton, the Securities and Exchange Commission was forced to admit that XRP is a “software code” following the amici brief he filed on behalf of the community.
He made this known after a Twitter user backed self-acclaimed Bitcoin creator Craig Wright in calling XRP a scam and security. After Wright described XRP as a scam, Deaton disclosed that he responded with a phrase: “the pot calling the kettle black.”
However, the comment did not sit well with Wright, who immediately blocked Deaton on Twitter. While narrating the incident, a Twitter user, who goes by the pseudonym D**tyDingo Crypto, said XRP is not only a scam but that Ripple’s co-founder Chris Larsen “admitted” that the token was security in 2012.
XRP IS A FKIN SCAM – LARSON KNEW XRP WAS A SECURITY BACK IN 2012 and Admitted it he’s a fuckin crook!!
— DirtyDingo Crypto (@swami_crypto) February 12, 2023
Responding to the comment, Deaton said it is irrelevant whether Ripple founders violated U.S. securities laws through the initial offer and sale of XRP. However, he maintained that today’s XRP, especially secondary market transactions, is not security.
“Whether the Ripple founders violated securities laws at some point is irrelevant to what XRP is today,” he said.
Deaton added that Bitcoin’s current legal classification has nothing to do with whether BTC pseudonymous founder Satoshi Nakamoto violated U.S. security laws in the early days.
If Satoshi Nakamoto would’ve sold some of his #BTC when he was the only one mining it (or one of only a few) and the buyer relied on Satoshi’s efforts and did nothing but sit back and expect BTC to go up, it would satisfy the Howey test and have nothing to do with #BTC today. https://t.co/xbHSEWH8wc
— John E Deaton (@JohnEDeaton1) February 12, 2023
He said, “Let me quote what we forced the SEC to admit: “Stripped down, XRP is software code.” XRP, like gold, BTC, groves, etc., can be offered and sold as a security. Whether the Ripple founders violated securities laws at some point is irrelevant to what XRP is today.”
Deaton Wins Big for Crypto
Attorney Deaton has been a thorn in the SEC’s flesh over the agency’s claim that XRP secondary market transactions are securities. The founder of Crypto Law recently filed an amici curiae brief in the Ripple v. SEC lawsuit contesting this claim.
Last month, attorney Deaton recorded a significant victory against the SEC in the LBRY lawsuit. As reported by TheCryptoBasic, Deaton, who represented tech journalist Naomi Brockwell, convinced the Judge that secondary market transactions of LBRY Credits (LBC) are not securities.
Interestingly, Deaton also forced the Securities and Exchange Commission to concede on record that LBC secondary market transactions are not securities. The ruling is considered a significant win for LBC holders and the entire crypto industry, as it could be referenced in future crypto-related securities cases.