Deaton Says “Ripple Must Decide What’s Best for Company, Not What’s Best for XRP Holders”

Attorney Deaton reacts to comments about Ripple’s plan to move away from the U.S.

Attorney John Deaton, the founder of CryptoLaw, has reacted to a recent comment by Ripple’s CTO David Schwartz, which suggested that the leading blockchain company could stop operating in the United States.

Reacting to Schwartz’s statement, attorney Deaton said Ripple must first consider its interest. According to Deaton, the Silicon Valley tech company must decide what is best for the company, its stakeholders, and its employees.

He added that Ripple’s decisions are not expected to favor XRP holders and developers building on the XRP Ledger (XRPL). Furthermore, Deaton said Schwartz’s statement is why XRP holders had to be represented in the ongoing lawsuit between Ripple and the SEC.

“This is a major reason XRP Holders had to be represented in the case. In the end, Ripple must decide what’s best for Ripple and its employees and shareholders – not what’s best for XRP Holders or other businesses developing on the XRPL.” Deaton said.

As reported earlier, Schwartz asserted that he hopes Ripple is not pushed to the point where the company is tempted to “walk through a door and slam it shut.” 

Schwartz further added that he could not guarantee XRP community members that Ripple might not consider leaving the United States.

Yeah, I think that's fair to say. I hope we don't get into a position where we're tempted to walk through a door and slam it shut behind us. But, of course, I can't promise we won't.

— David "JoelKatz" Schwartz (@JoelKatz) February 21, 2023

His statement sparked concern among members of the XRP community, who requested clarity.

This tweet from @JoelKatz is kind of worrying me a bit. Who goes through the door? & who is shut out?

1. Ripple goes through the door and retail XRP holders are shut out.

2. Ripple & XRP go through the door and the rest of the crypto space is shut out.

Is it 1 or 2? https://t.co/HEOcPR1xyF

— Yassin Mobarak (@Dizer_YM) February 22, 2023

Responding to the inquiry, Schwartz said he hopes Ripple Labs is not pushed to the point where it would have to explore any options. 

Attorney Deaton Supports Retail Investors

Meanwhile, attorney Deaton is the lawyer representing XRP community members as “Amici Curiae” in the Ripple v. SEC lawsuit. His primary focus is to ensure that the SEC fails in its quest to qualify XRP secondary market transactions as securities. 

Attorney Deaton has played a significant role in achieving this goal. Last month, Deaton recorded a major victory for LBRY Credit (LBC) token holders in the lawsuit between LBRY v. SEC. Deaton, who appeared as amici counsel for tech journalist Naomi Brockwell, convinced the judge that LBC secondary market transactions are not securities. He also got the SEC to concede that LBC secondary market transactions do not constitute a security.