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HomeCrypto NewsMarketPro-XRP Lawyer Says Ripple Could Have Prevented SEC Lawsuit If It Did This

Pro-XRP Lawyer Says Ripple Could Have Prevented SEC Lawsuit If It Did This


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Attorney Deaton says Ripple could have averted the SEC’s lawsuit if the blockchain company hired Jay Clayton’s law firm.

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In a recent tweet, Crypto-Law founder John Deaton highlighted the move Ripple could have taken to prevent the SEC lawsuit.

Attorney Deaton said Ripple Labs could have prevented the December 2020 lawsuit if it hired former SEC Chair Jay Clayton’s law firm Sullivan & Cromwell, just like Ethereum’s co-founder Joseph Lubin did.

Per Deaton, if Ripple hired Sullivan & Cromwell, Clayton would have recused himself from voting in support of an enforcement action against one of his law firm’s clients.

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He added that the blockchain company did not hire Sullivan & Cromwell’s services. Consequently, the blockchain company has incurred over $200 million in legal fees fighting the SEC’s enforcement action.

“But they didn’t, and now we are $200 million later, with more to go,” Deaton said.

How Ethereum Averted SEC Enforcement Action

Attorney Deaton recounted a smart move Lubin made by hiring Sullivan & Cromwell to represent ConsenSys. He noted that Lubin hired the law firm right after Clayton was appointed SEC chairman.

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Deaton said although several XRP holders were furious at him for stating that Lubin acted brilliantly, he believes the move guaranteed Clayton would not go after Ethereum.

“Although I may hold other things against Lubin, no one can blame him for being smart and hiring Sullivan & Cromwell,” Attorney Deaton added.

According to Deaton, Clayton swore in a Congressional hearing that he would recuse himself and not vote against an enforcement action involving his firm’s clients.

He added that the SEC chair kept his word and never supported an enforcement action against Ethereum. Instead, Clayton supported an enforcement action against his client’s biggest competitor- Ripple Labs.

Two Important Deadlines in SEC v. Ripple Case

Meanwhile, the SEC v. Ripple case could be heading to an appeal. The SEC recently filed a motion requesting Judge Torres to certify an interlocutory appeal.

Notably, Ripple is expected to file its response to the SEC’s request on September 1. Furthermore, the SEC has a deadline of September 8 to address Ripple’s response.

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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.



Lele Jima
Lele Jima
Lele Jima is a cryptocurrency enthusiast and journalist who is focused on educating people about how the nascent asset class is transforming the world. Aside from cryptocurrency-related activities, Jima is a lover of sports and music.

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