XRP Lawsuit: Deaton Says No Secondary Sale Of Asset Has Been Ever Found To Be Security

April 7, 2023 11:14 am Comments

As the lawsuit between Ripple and the SEC continues to drag on, the debate on whether or not XRP is considered a security still exists.

Ripple attorney John Deaton just recently shared a statement that indicates that Ripple is likely to win the case against the SEC.

Deaton stated that there has never been a secondary sale of an asset that has ever been found to be considered a security in US history before.

This is quite the convincing argument because it shows that the historical data certainly favors Ripple and proves that Ripple should be considered a commodity based on all past definitions.

This once again gives another reason among many that Ripple will be successful in defending its position in the lawsuit.

Crypto-News-Flash reports:

Taking to Twitter, his favorite social media platform, Deaton presented a 4 case scenario that he is expecting may be the turn of events for the lawsuit. First, he noted that the best-case scenario will be for Ripple to record an outright win with the Judge “smacking the SEC for gross overreach and behavior in the case.”

Deaton noted in his comment that “Judge Netburn has commented SEC lawyers are hypocrites, lack faithful allegiance to the law, and only care about winning the next argument” and as such might showcase a favorable leaning toward Ripple in the case.

Deaton also noted that the next best outcome will be the Judge ruling that Ripple sold XRP as an investment contract in the early stages of the token’s existence.

According to him, the Judge can lean in this direction based on the prospectus sent to the first 100 investors. This way, the Judge can rule that the secondary sales of the XRP coins do not constitute a security.

As for a potential timeline on when the case may be resolved, Deaton shared that there is still no exact deadline on when a final decision will be revealed.

There has been much anticipation for closure due to the fact that the case has already dragged on for around 2 years and many suspect that the case may be elevated to the Supreme Court level.

Even if that did happen, lawyers have indicated that the Supreme Court will side with Ripple as the defendant due to all past historical cases.

Of course, that would drag the case on for a little longer if that did happen so many among the XRP community are closely watching what will happen.

Deaton stated that a judgement could take as long as 60 days which makes June an important month to pay attention to.

CryptoPotato concludes:

Prior to Chamberlain’s reaction on the social media platform, the financial expert Fredo Ayala said up to 5 million people depend on the lawsuit between Ripple and the SEC since they have invested in XRP and are expecting a possible price expansion.

The legal battle started in 2020 when the watchdog accused the blockchain organization of raising substantial funds through the sale of XRP tokens in an unregistered security offering to investors in 2013.

Ripple’s executives have repeatedly claimed over the years that coin should be viewed as a commodity. Chief Technology Officer David Schwartz recently explained why:

“XRP is a raw good that trades in commerce, and one XRP is treated as equivalent to every other XRP. That’s pretty much the definition of a “commodity.” No part of XRP’s value comes from anyone else’s legal obligations to XRP holders.”

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