- Deaton suggests SEC victory would’ve rallied anti-crypto sentiments.
- Judge Torres’ ruling on XRP as non-security creates crypto shockwaves.
- Mark Cuban criticizes SEC’s Gensler for calling token holders investors.
John E Deaton, the legal advocate for Ripple’s cryptocurrency, XRP, recently raised concerns over what he termed “anti-crypto” sentiments among some politicians, had the SEC’s lawsuit against Ripple turned out differently. He questioned the actions of those Democrats who publicly expressed their views following the notable Torres Decision, implying that the outcome might have varied substantially had Judge Analisa Torres ruled XRP as a security. Deaton’s perspective, it seems, places the Ripple XRP case as an unprecedented SEC non-fraud enforcement action since 1946.
If the SEC had won the case as it had hoped, @GaryGensler and @ewarren’s anti-crypto army would’ve been out in full force. Do you think all Democrats who’ve spoken out since the Torres Decision, including the 6 who voted in favor of the Bill coming out of the @FinancialCmte,…
— John E Deaton (@JohnEDeaton1) July 31, 2023
Deaton’s remarks come in the wake of the landmark judgment by Judge Torres, who determined that XRP does not qualify as a security, contrary to the SEC’s long-standing belief. This ruling sent tremors across the crypto market, prompting speculation that the SEC may attempt to overturn the decision on appeal.
Despite the potential for an appeal, Deaton, who defended XRP holders in the lawsuit, maintains that the prospects for crypto remain undeterred. In his opinion, XRP stands a strong chance in an appellate court, given the magnitude of Judge Torres’s decision. The current ruling remains law until such an appeal is resolved, a process that could extend over two years, adding to XRP’s ongoing bullish trajectory.
Yet, there is allegedly some degree of misunderstanding or misrepresentation about the Torres Decision within the financial community, as Deaton pointed out in another tweet. He questioned if this misrepresentation was an honest confusion or a deliberate attempt to promote an inaccurate narrative.
In a related development, Mark Cuban, a well-known entrepreneur and investor, criticized SEC Chair Gary Gensler’s practice of referring to token holders as investors. Cuban argued that this terminology is incorrect, insinuating that it serves Gensler’s agenda. He stressed the importance of understanding which tokens actively contribute to a “common enterprise,” suggesting that this may be challenging without sufficient data.
He is also in the habit of exclusively calling token holders investors. He knows that is incorrect, but it serves his purpose.
Which leads to a question, which tokens are still actively enhancing , supporting and promoting ? In other words which are acting as a “common… https://t.co/lYQHUTAPyr
— Mark Cuban (@mcuban) July 29, 2023
While the immediate outcome of the Ripple lawsuit is a victory for XRP, the long-term implications of this case may influence the evolving landscape of cryptocurrency regulation and the perception of digital assets as a whole.