XRP Holders’ Lawyer John Deaton Slams SEC Position

The case between the United States Securities and Exchange Commission (SEC) and Ripple is raging, pending a decision that some say will come relatively soon.

That said, John Deaton, an attorney representing thousands of XRP holders, recently reviewed and accepted a Twitter thread that criticizes the SEC’s position. Although this is to be expected, it is interesting to examine some of the arguments in question.

Crypto lawyers can get paid big bucks, like Ripple lawyers, if the issues involved are complicated. But that doesn’t complicate things and it’s not good public policy. Ripple’s case is not really that difficult. It only raises two real questions.

—Sandy Seth (@CryptoDukeji) June 19, 2023

• A patent litigator took to Twitter to share his thoughts on Ripple v. SEC, saying it really wasn’t that complicated.

Crypto lawyers can get paid a lot of money, like Ripple lawyers, if the issues involved are met. But that doesn’t complicate things and it’s not good public policy. Ripple’s case is not really that difficult. It only raises two real questions.

• The questions themselves, according to the litigant, are: 1. Did Howey (referring to the Howey test) eliminate the need for an investment contract to evidence an interest in the business, or did the Howey factors add to this fundamental requirement of a security, and 2: Did XRP itself or any of Ripple’s XRP sell contracts meet all the requirements of a security contract? investment.
• According to the legal expert, the answer to the first question is that “Howey summarized investment contract law where contracts must clearly meet all requirements.
• The answer to the second question is that “XRP itself nor any of Ripple’s XRP sales contracts involving XRP have guaranteed the buyer a financial interest in a joint venture”.
• The thread goes on to provide some examples and comparisons that reinforce the aforementioned findings.
• John Deaton admitted to being one of the “lawyers discussing useless matters”. However, he also said:

I don’t mind the comment because I agree with it. Unfortunately, when the SEC takes the position that “XRP traded, even on the secondary market…represents the investment contract,” one is forced to do so.