Deaton Gets SEC To Admit That Ripple Is Considered Software Code

February 14, 2023 3:35 pm Comments

As the lawsuit between the SEC and Ripple drags on, John Deaton has been able to share some positive developments in the case.

Most recently, Deaton shared that they were able to get the SEC to admit that Ripple is a software code which will greatly help defend Ripple’s position that XRP is not a security.

This puts XRP in the same category as Bitcoin as many consider Bitcoin to also just be decentralized software that has no central control authority.

The contradictory comments that Deaton can get the SEC to admit to has been helping the lawsuit tremendously as these comments will likely be recorded and used again for all future arguments.

This goes beyond just the XRP lawsuit, but also all future lawsuits that involve debates on whether a digital asset is considered a security.

Crypto-News-Flash reports:

John Deaton was replying to a Twitter user who said XRP was a scam. The user went on to claim that Chris Larsen, the co-founder of Ripple Labs knew that XRP was security back in 2012 and that he admitted it. Obviously, Deaton disagrees.

Deaton also disagreed with self-proclaimed Bitcoin creator Craig Wright, who called XRP a scam. Deaton called him a Pot Kettle Black in return. John Deaton wrote:

I read the BTC WhitePaper. Tbh, I didn’t understand all the technical stuff but I knew I was reading something special that could change the world. Immediately, I had immense respect and affection for this Satoshi guy.

Apparently, he doesn’t feel the same way.

Prior to this, John Deaton was notably planning to submit a request to file an amicus brief. The brief was to be filed with respect to the Zakinov versus Ripple Labs lawsuit.

Currently, the lawsuit has lasted for around 2 years now and many speculators believe that a settlement is likely.

This is due to more additional strong arguments that are supporting Ripple’s defense such as the fact that Bitcoin’s current legal classification has nothing to do with whether or not the founder of Bitcoin had violated securities laws.

By extension, that same logic can also be applied to XRP where XRP’s current status as a digital asset has nothing to do with whether or not Ripple had violated securities laws back in 2012.

Of course, the SEC will likely not take that argument as a reason which indicates that the agency has a biased perspective and will only look at facts that conveniently support its argument.

Much is still at stake here as the SEC continues its aggressive agenda to regulate the crypto industry, especially after the events in 2022.

TheCryptoBasic reports:

Attorney Deaton has been a thorn in the SEC’s flesh over the agency’s claim that XRP secondary market transactions are securities. The founder of Crypto Law recently filed an amici curiae brief in the Ripple v. SEC lawsuit contesting this claim.

Last month, attorney Deaton recorded a significant victory against the SEC in the LBRY lawsuit. As reported by TheCryptoBasic, Deaton, who represented tech journalist Naomi Brockwell, convinced the Judge that secondary market transactions of LBRY Credits (LBC) are not securities.

Interestingly, Deaton also forced the Securities and Exchange Commission to concede on record that LBC secondary market transactions are not securities. The ruling is considered a significant win for LBC holders and the entire crypto industry, as it could be referenced in future crypto-related securities cases.

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