SEC vs. Ripple: XRP Lawyer Uncovers Hidden Dangers in Complaint

Cryptocurrency advocate John E. Deaton warns of the grave threat the SEC’s case against Ripple poses to crypto.

John E. Deaton presenting some documents, looking very pleased with his finds.
Created by Gabor Kovacs from DailyCoin
  • Deaton has warned about major threats posed to the crypto industry in the SEC’s Ripple case.
  • A clash has arisen as differing opinions have emerged regarding the charges.
  • Hidden dangers have been uncovered as intentional distractions have clouded the SEC’s complaint.

Prominent cryptocurrency advocate and lawyer John E. Deaton took to Twitter today to highlight the profound threat the United States Securities and Exchange Commission’s (SEC) case against Ripple poses to the entire cryptocurrency industry.

Deaton emphasized the importance of reading the SEC‘s complaint with utmost attention, disregarding any deliberate distractions, to identify the underlying dangers concealed within.

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The lawyer, known for his pro-crypto stance, dedicated a year to persuading crypto enthusiasts that the SEC’s charges against Ripple implicated XRP secondary market transactions as securities. 

Nevertheless, more than a dozen individuals vehemently disputed Deaton’s assertion, arguing that the regulatory body focused solely on securities associated with Ripple’s XRP sales. Even the SEC’s legal representatives dismissed his concerns as exaggerated.

Deaton Explains SEC’s Section 4 Exemption & Fights for XRP Investors

Deaton revealed that certain SEC lawyers claimed the agency would apply the Section 4 exemption to XRP secondary market transactions. 

In clarifying the intricacies of Section 4 of the Securities Act, he shed light on the provision that shifts the responsibility of exemption onto the token holder. However, Deaton pointed out that this exemption clause does not extend to secondary transactions.

In addition to convincing others about the implications of secondary market transactions, Deaton filed an amicus brief in support of thousands of XRP investors, aiming to safeguard their interests in the ongoing case.

On the Flipside

  • Deaton’s perspective on the SEC’s case against Ripple may be biased, given his prominent role as a cryptocurrency advocate and lawyer for XRP holders.
  • Deaton’s interpretation of Section 4 exemption and its applicability to XRP secondary market transactions may be subject to differing opinions within the legal community.
  • Deaton’s filing of an amicus brief on behalf of XRP investors could be viewed as an attempt to further his agenda and protect his client’s interests.

Why You Should Care

Deaton’s comments are significant in the Ripple community and the broader crypto sphere. By emphasizing the potential threats posed by the SEC’s case against Ripple and shedding light on the implications for XRP secondary market transactions, Deaton’s insights serve as a crucial warning signal for crypto enthusiasts.

To learn more about the accusations against the SEC for stonewalling in the Ripple case, read here:

Empower Oversight Accuses SEC of Stonewalling in Ripple Case

For insights into how the SEC lawsuit is restricting Ripple’s access to XRP reserves, check out this article:

How SEC Lawsuit Could Restrict Ripple’s Access to XRP Reserves

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Kyle Calvert

Kyle Calvert is a cryptocurrency news reporter for DailyCoin, specializing in Ripple, stablecoins, as well as price and market analysis news. Before his current role, Kyle worked as a student researcher in the cryptocurrency industry, gaining an understanding of how digital currencies work, their potential uses, and their impact on the economy and society. He completed his Masters and Honors degrees in Blockchain Technology within Esports and Business and Event management within Esports at Staffordshire University.