• Tue. Jun 18th, 2024

A Crypto Lawyer Has Blasted US SEC’s Lawsuit Against Ripple

Phillip Seefeldt

ByPhillip Seefeldt

May 10, 2023

A crypto lawyer dichotomizes the US SEC’s lawsuit against the well-known crypto exchange Ripple. Recently, Brad Garlinghouse (the chief executive of Ripple Labs) disclosed that Ripple would spend nearly $200M in the case of legal fees. The purpose of the respective move will be to ward off a forceful lawsuit from the SEC.

John Deaton Criticizes SEC’s Lawsuit against Ripple

Nonetheless, a crypto lawyer has elaborated on the respective matter. John Deaton, the person responsible for owning the Deaton Law Firm and founding Crypto Law, recently described the merits of the lawsuit as extremely far-fetched. In these words, Deaton dressed down the lawsuit of the SEC.

He mentioned his arguments in front of the court in an amicus curiae brief back on the 4th of this month. Deaton provided a summary of the lawsuit being fought between the Securities and Exchange Commission (SEC) of the United States and Ripple with his opinions and considerations. He additionally shared the respective arguments on Twitter in several posts.

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He stated that the crypto exchange has been accomplishing financial settlements related to the transfers for years. However, in the lawsuit of the SEC, each sale of the XRP token by Ripple is categorized as an ICO sale by the US securities regulator. Deaton pulls back at the respective view of the business carried out by Ripple.

He is of the view that the securities regulator has exaggerated its lawsuit to a preposterous extent. Keeping this in view, he ridiculed the claim raised by the SEC on the sales of the XRP token. He added that the XRP-related theory of the SEC is very farfetched. As per him, it trips through time and space, capturing the entirety of the future sales also in far-reaching lands.

According to him, the scope of the Howey argument of the SEC has become very stretched, so much so that it is indefinable in time or space. In addition to this, the lawsuit of the SEC has also remained ineffective in referring to any legal precedent or authority for the justification for its logic to categorize XRP among the securities.

Rather, Deaton thinks that an excessively wide and fundamentally ambiguous definition has been made by the SEC for security that it implements on XRP. On the other hand, Brad Garlinghouse of Ripple has spoken at the XRP Las Vegas 2023 occasion recently. In his comments, Garlinghouse thanked the community of the platform for their support throughout the lawsuit.

Ripple CEO Discloses Having Spent $200 Million on Legal Defense

The Ripple CEO disclosed in a recent interview that the firm had recompensed $200M up till now for the defence thereof from the US securities regulatory agency. He revealed this when he appeared at the Dubai Fintech Summit. While chatting with Dan Murphy, he mentioned that the above-mentioned amount would have been spent by the time of the denouement of a lawsuit that is nonsensical, according to the people.

He also said that the respective figure had been first disclosed by him publicly. The crypto community reacted to the news regarding such a huge sum in the case of legal defences. The responses were mixed. A few in the community acclaimed the work done by the platform to ward off the onerous regulation. The others included those people who categorized the respective amount to be huge to be spent on such things.

Phillip Seefeldt

Phillip Seefeldt

Phillip Seefeldt is a skilled and perceptive news writer known for his comprehensive analysis and engaging writing style. With a commitment to accuracy and a deep understanding of current affairs, his articles provide readers with insightful perspectives and thought-provoking insights.

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