In a mail On X, prominent pro-XRP lawyer John E. Deaton, highlights the complex dynamics between the US Securities and Exchange Commission (SEC) and Ripple’s competitors, suggesting a coordinated effort to undermine the company and its digital assets.
Deaton emphasized the widespread impact of the SEC’s lawsuit against Ripple, saying, “I don’t think one can properly estimate the damage to Ripple’s business because of the sweeping nature of the SEC’s complaint against Ripple.” He emphasized the historical context, noting, “You have to remember that in 2012, when Ripple’s founders created XRP, stablecoins didn’t exist and the cross-border payments market was wide open and ready for such disruptive technology. It’s clear that it’s still the case.” And so to this day.”
Insights from Deaton on the XRP lawsuit
Looking at the strategic decisions made by Ripple during its early operations, Deaton pointed to the significant debate over whether Ripple should prioritize smart contracts or payments. He pointed out an interesting anecdote from that period: Vitalik Buterin, co-founder of Ethereum, was staying with Stefan Thomas, then Ripple’s CTO.
Ultimately, Ripple chose to focus on cross-border payments, a move Deaton considered strategic given the absence of stablecoins and the huge potential of the global cross-border payments market. “Given that stablecoins didn’t exist at the time, and given the size of the global cross-border payments market, I can see why,” Deaton explained.
To support Ripple’s strategic focus, Deaton pointed to data indicating the explosive growth of cross-border payments flows. In 2022, these transactions exceeded $150 trillion, representing more than 96% of the total volume of cross-border payments, with expectations of reaching $250 trillion by 2027. This growth is due to the expansion of international trade, the rise of global e-commerce, and the increase in Movement of individuals and companies across borders.
Deaton also highlighted the key milestones that initially boosted the adoption of digital assets. “After listing XRP in February 2019, Coinbase touted the utility of XRP and USDC for moving money internationally, in seconds, and practically for free. In June 2019, MoneyGram began using XRP.
However, the narrative took a dramatic turn when the SEC filed a lawsuit against Ripple in December 2021. “After the SEC filed suit, Coinbase delisted XRP and MoneyGram switched from using XRP and began using XLM instead,” Deaton recounted. “From that.”
Criticizing the SEC’s approach, Deaton said: “Is anyone really going to say that there’s a real difference, under the law, between MoneyGram using XLM instead of XRP?” He pointed out the irony of the SEC’s actions, noting that “XLM’s founder, Jed McCaleb, is also the co-founder of Ripple & XRP!”
Deaton described the SEC’s complaint as overly broad, saying: “The SEC’s complaint against Ripple and Ripple is without a doubt the most broad complaint the SEC will ever file.” He also accused the SEC of a potential conflict of interest, revealing that individuals involved in the lawsuit subsequently joined Ripple’s competitors. He stressed that “these same people who pushed for the case against Ripple continue to work with or for Ripple’s competitors.”
In response to doubts about his motives, Deaton explained his financial interests and independence. “First, as I disclosed in my FEC filings, 80% of my net worth is in Bitcoin. Second, when Eleanor Terrett and Charles Gasparino did their big write-up about the case in November 2021, they wrote: ‘Deaton is certainly not a fan of Ripple,’” he criticizes. The fact that Ripple itself sold around $800 million…’
“But when you look at the circumstances surrounding how this case was brought, including the massive conflicts of interest, and the fact that the people behind the lawsuit have continued to help or work with Ripple’s competitors, you don’t have to be a fan of calling that out,” he concluded.
At press time, XRP was trading at $2.12.
Featured image from YouTube, chart from TradingView.com
Comments are closed, but trackbacks and pingbacks are open.