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XRP as Security Debate: Attorney John Deaton Sheds New Light

Sat, 06/24/2023 - 13:10
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Godfrey Benjamin
Attorney John Deaton has once again backed his thesis regarding XRP
XRP as Security Debate: Attorney John Deaton Sheds New Light
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Pro-crypto lawyer John Deaton has continued to weigh in on the conversations bordering on the security status of the XRP coin. In his characteristic manner, the vocal attorney responded to a Twitter user Caesar Korvinus, who noted that the reason why he invested in XRP was based on the knowledge he has with respect to who sits on the board of Ripple Labs and the expertise of the firm's Chief Technical Officer (CTO) David Schwartz.

Wading into the conversation, John Deaton explained that if Korvinus indeed had direct contact with Ripple and made his purchases from the firm, then some of the elements of the Howey Test can be satisfied.

He noted that in the case presented by Korvinus, investors who acquire their XRP this same way can be said to be in a common enterprise with Ripple and the efforts of Schwartz gave them a reasonable expectation of raking in profit with little or no efforts at all.

Ripple Case: SEC Files Additional Support for Summary Judgment

Weighing SEC claims

Deaton, while acknowledging that there are some people in Korvinus' shoes, reemphasized how the broader claims by the United States Securities and Exchange Commission (SEC) that all sales of XRP, even those acquired from the secondary market, are investment contracts.

Deaton maintained his earlier argument that this is false and that the situation becomes different for users who "acquired XRP for non-investment purposes like transferring money on the ledger or utilizing the DEX."

Deaton is representing about 75,000 XRP holders as amicus curiae in the ongoing legal battle between the Ripple firm and the SEC. The argument is as simple as revealed earlier, the industry parties want the court to dismiss the lawsuit filed against Ripple for lack of merits. While some of the key issues embodied in the suit will be addressed individually by Judge Analisa Torres, the summary judgment on the case is expected anytime from now.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.