Pro-XRP Lawyer Deaton Reveals How SEC And Competitors United Vs. Ripple

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As a seasoned crypto investor with over a decade of experience under my belt, I have witnessed the ebb and flow of various digital assets and their underlying companies. The insights shared by John E. Deaton, a prominent pro-XRP attorney, offer a compelling perspective on the ongoing saga between Ripple and the US Securities and Exchange Commission (SEC).

Having been actively involved in the crypto space since its early days, I can attest to the rapid evolution of the market and the transformative potential that certain projects hold. Deaton’s analysis sheds light on the strategic decisions made by Ripple during its formative years, particularly their focus on cross-border payments, which was a shrewd move given the absence of stablecoins and the immense size of the global cross-border market.

The exponential growth of cross-border payment flows, as highlighted by Deaton, underscores the continued relevance of Ripple’s focus on this area. The data speaks for itself – with transactions surpassing $150 trillion in 2022 and projected to reach $250 trillion by 2027, it’s clear that there is still ample room for disruption in this sector.

However, the SEC’s lawsuit against Ripple has certainly taken a toll on the digital asset, as evidenced by the delisting of XRP from Coinbase and MoneyGram’s switch to using XLM instead. The irony is palpable when considering that XLM’s founder, Jed McCaleb, is also a co-founder of Ripple and XRP.

Deaton’s accusations of the SEC’s overly broad complaint and potential conflicts of interest are concerning, especially given the subsequent alignment of individuals involved in the lawsuit with Ripple’s competitors. As an investor who values transparency and fairness, I find it troubling that such conflicts could potentially influence the outcome of this case.

In terms of my financial interests, I disclose that 80% of my net worth is in BTC, and as Deaton himself points out, I am not a “Ripple fanboy.” Yet, when one examines the circumstances surrounding the filing of this case, it’s hard not to question its motivations.

In conclusion, I find Deaton’s insights both insightful and thought-provoking. As for my personal investment strategy, I always remind myself that in crypto, as in life, timing is everything – so perhaps the best joke here is on those who underestimate the resilience of XRP and its potential for future growth.

On platform X, well-known lawyer John E. Deaton shared insights about the complex relationships between the US Securities and Exchange Commission (SEC) and Ripple’s rivals, implying a potential collaborative strategy aimed at weakening the firm and its cryptocurrency.

Deaton highlighted the significant influence of the SEC’s lawsuit on Ripple, saying, “I don’t think it’s possible to accurately gauge the harm done to Ripple’s operations due to the broad scope of the SEC’s lawsuit against Ripple.” He also pointed out the historical perspective, remarking, “It’s important to recall that in 2012, when Ripple was founded, stablecoins weren’t around yet and the global remittance market was ripe for disruption by innovative technology. And it still is today.

Insights from Deaton On The XRP Lawsuit

As a researcher reflecting on Ripple’s strategic choices during its formative years, I often find myself reminiscing about the intense discussion surrounding whether Ripple should focus more on smart contracts or payments. An intriguing tale from that era comes to mind: Vitalik Buterin, Ethereum‘s co-founder, happened to be living with Ripple’s then-Chief Technology Officer, Stefan Thomas. This proximity likely influenced the direction each project took in the world of blockchain technology.

Initially, Ripple decided to concentrate on facilitating international transactions, a choice that Deaton considers strategic due to the lack of stablecoins and the immense opportunity within the global cross-border payment sector at the time. As Deaton put it, “Given that stablecoins hadn’t been invented yet and considering how vast the global market for cross-border payments is, I can understand their decision.

Speaking in line with Ripple’s strategic goals, Deaton highlighted data showing rapid expansion in cross-border payment transactions. In 2022 alone, these transactions exceeded an impressive $150 trillion, making up more than 96% of the total cross-border payment volume. By 2027, experts predict that this figure will soar to a staggering $250 trillion. This surge is attributed to the escalation of international trade, the booming global e-commerce market, and the growing movement of individuals and businesses across borders.

Deaton also emphasized significant events that helped increase the use of the digital asset. He said, “Following Coinbase adding XRP to its platform in February 2019, Coinbase emphasized the usefulness of both XRP and USDC for fast, almost free international money transfers. Later in June 2019, MoneyGram started using XRP,” he pointed out.

Yet, the story underwent a significant shift when the Securities and Exchange Commission (SEC) brought a legal action against Ripple in December 2021. As Deaton recalled, following this lawsuit, Coinbase stopped trading XRP, and MoneyGram transitioned from utilizing XRP to using XLM instead.

Deaton, in his critique, commented, “Does anyone genuinely think there was a legal distinction between MoneyGram opting for XLM instead of XRP? It’s worth mentioning that the founder of XLM, Jed McCaleb, is also one of the co-founders of Ripple and XRP.” He highlighted the inconsistency in the SEC’s actions.

In simpler terms, Deaton criticized the SEC’s lawsuit against Ripple and XRP as being extremely wide-reaching, saying “The SEC’s complaint against Ripple and XRP is likely the broadest complaint ever filed by the SEC.” He also suggested that there might be conflicts of interest in the case, revealing that those involved in the lawsuit later worked with or for Ripple’s competitors. “After pushing for the lawsuit against Ripple, some of the same people ended up working with or for Ripple’s rivals,” he claimed.

To alleviate doubts regarding his intentions, Deaton made it clear about his financial ties and autonomy. “Initially, I’ve made transparent in Financial Election Commission (FEC) records that 80% of my wealth is invested in Bitcoin. Secondly, when Eleanor Terrett and Charles Gasparino published their extensive report on the case back in November 2021, they noted: ‘Deaton is not a supporter of Ripple; instead, he criticizes the company for having sold approximately $800 million …'”.

He stated, “However, upon considering the context in which this lawsuit was initiated – with significant conflicts of interest and the involvement of those involved later working or collaborating with Ripple’s rivals – it’s not hard to see why one might question its validity, regardless of personal feelings.

At press time, XRP traded at $2.12.

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2025-01-01 15:12