John Deaton Promises XRP Investors To Hold SEC Accountable For $15 Billion Loss

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As a seasoned researcher with a keen interest in the crypto sphere, I find John Deaton’s unwavering commitment to holding the SEC accountable for its actions in the Ripple case particularly noteworthy. His dedication to representing small XRP investors, even without monetary compensation, speaks volumes about his integrity and passion for justice.

Legal advisor John Deaton vows to make the U.S. Securities and Exchange Commission (SEC) answer for the $15 billion loss experienced by XRP investors, a consequence allegedly caused by the SEC’s lawsuit against Ripple. As a candidate running against Senator Elizabeth Warren, known for her critical stance on cryptocurrencies, Deaton intends to follow through with this pledge upon his election to the Senate. The attorney has already detailed several strategies he plans to employ in order to hold the Commission accountable.

John Deaton Promises To Hold The SEC Accountable

In an X post, The pro-XRP lawyer promised to hold the SEC accountable for the 75,000 small XRP investors he represented in the SEC’s case against Ripple. The legal expert added that he isn’t willing to accept an apology from the Commission. Instead, he plans to hold people at the SEC accountable when he gets to the Senate since Senator Warren won’t do it. Specifically, the lawyer claimed these small investors lost over $15 billion thanks to the “SEC’s misconduct and gross overreach.”

The senatorial candidate emphasized that the federal court criticized the Commission’s lawyers for showing more loyalty to winning their lawsuit against Ripple than upholding the law and safeguarding investors, a duty they are obligated to fulfill. Interestingly, the lawyer mentioned that he personally took on the task of protecting these investors without charging them a fee.

In this scenario, John Deaton served as a legal representative on behalf of these investors, taking into account their involvement in the Ripple lawsuit. This legal dispute is thought to have negatively impacted XRP‘s value, particularly when it was initiated in 2020, coinciding with the 2021 bull market. As a result, these investors were unable to reap the full profits they had hoped for from their cryptocurrency investment.

John Deaton disclosed during the initial phase of the Ripple lawsuit that he submitted a Writ of Mandamus to challenge the SEC’s actions. He maintained that the SEC breached 75 years of legal tradition by asserting XRP was a security, arguing instead that the fundamental asset couldn’t be classified as a security, even if it was marketed as an investment contract.

In the end, the court endorsed the logic presented by Deaton, as Judge Analisa Torres issued a groundbreaking decision in the case in 2023, stating that XRP was not considered a security on its own, despite Ripple’s XRP sales potentially being investment contracts.

Senator Warren Failed To Act In The Ripple Case

John Deaton disclosed that Senator Warren, who represents Massachusetts in the Senate, didn’t take action in the XRP lawsuit even though 627 token holders she represented resided in that state. Deaton, the lawyer, stated he contacted Warren due to her role on the banking committee supervising the SEC at the time. However, despite his requests for her involvement, she remained inactive. Given their well-known negative stance towards cryptocurrency, it may not be surprising that Warren and SEC chair Gary Gensler chose not to support these token holders.

In my role as an analyst, I am eager to hold the Commission accountable, and so I have drafted two proposed bills that I plan to advocate for upon joining the Senate. The primary bill aims at shedding light on regulatory capture within the SEC, while the secondary proposal seeks to establish a 3-5 year statutory ban preventing regulators from working in an industry they oversaw during their tenure as regulators.

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2024-09-13 19:59