FOX Journalist Mocks XRP Ruling, Top Crypto Lawyer Weighs In

Renowned crypto lawyer establishes the misconception spread by a senior FOX business columnist.

John Deaton is being shouted at by a small Charlie Gasparino in a futuristic room.
Created by Gabor Kovacs from DailyCoin
  • Charles Gasparino lashes out on Judge Torres, trolls XRP Army.
  • Lawyer John E. Deaton tears down Gasparino’s theory on Twitter.
  • The SEC prepares to appeal Torres’ decision, but there’s a catch.

Fox Business correspondent Charles Gasparino has ripped into the XRP Army and Ripple executives again. This time, the veteran journalist attacked Judge Analisa Torres, who made the recent favorable decision concerning Ripple’s $XRP sales, which set a precedent for cryptocurrency regulation.

By the ruling, XRP is deemed not to be a security, as the 1934 Securities Act surprisingly lacked modern measurements of financial instruments. To that, the senior correspondent for FOX replied with his own allegations against Judge Analisa Torres, comparing her decision to declare a Proof-of-Stake (PoS) cryptocurrency to another case.

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Gasparino shared a link to a piece from the New York Post, where a gang member with recognition in the criminal world was set free after a ruling by Torres. Gasparino ended his tweets with a photo of him downing a beer in Naples: “To my friends in the XRP Army — A salute!”

Top Lawyer Dismantles Fox Journalist’s Mockery of Ruling

While crypto traders on Twitter have been clashing with the senior FOX journalist for the past two weeks, a reputable pro-blockchain lawyer, John E. Deaton, rejected Gasparino’s claims: “Show me a Howey factor that considers the level of sophistication of the investors. You can’t.”

Deaton, the Managing Partner of the Deaton Law Firm, refers to cryptocurrencies as a new generation of money that cannot be measured by the Howey Test, as many factors would require an updated legal framework. 

Deaton added: “I’ve been fighting tribalism and echo chamber politics for the last three years. In 2013 SEC Officials were calling Bitcoin a security.” Indeed, the most prominent digital asset Bitcoin is considered the only truly decentralized money by the U.S. Securities and Exchange Commission (SEC) today. But nine years ago, that wasn’t the case.

On the Flipside

  • The SEC’s Chair, Gary Gensler, was heavily disappointed in the favorable decision for $XRP.
  • The SEC is preparing to appeal the ruling, but the issuance by the Second Circuit Court could take up to two years.

Why This Matters

The heated discussion around the landmark decision in the SEC vs. Ripple lawsuit shows different sides of opinion concerning Proof-of-Stake altcoins.

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Author
Tadas Klimasevskis

Tadas Klimaševskis is a Lithuanian journalist at DailyCoin, specializing in covering the lighter side of the crypto industry such as memecoins and pop culture in the metaverse. He has experience as a music artist, English language teacher, and freelance writer, and uses his creative writing skills to summarize valuable information in his work. He is also a strong believer in the potential of blockchain and spends his free time listening to music, traveling, and watching basketball games.