The recent decision declaring XRP not to be a security in the Ripple vs. Securities Exchange Commission (SEC) case was largely hailed as a victory for the general industry, with the potential to catalyze future price gains. Indeed, numerous industry players view Ripple’s partial triumph in this legal matter as a positive development for the cryptocurrency space.
In particular, lawyer John Deaton highlighted in an August 11 post on X that the cryptocurrency sector is fortunate to have the support of the XRP community, which significantly influenced the outcome of the case.
According to Deaton, who also represents XRP holders in this matter, the collective efforts of the token holders who submitted affidavits played an instrumental role in influencing the court’s decision.
“The Crypto industry is lucky that 75K XRP holders chose to unite and fight back and submit affidavits – affidavits that were cited by the Judge in her decision finding programmatic sales of XRP, on exchanges, even when sold by Ripple, to not be securities,” he said.
In the post, the attorney underscored the importance of collective action and engaged communities in shaping the regulatory landscape for cryptocurrencies.
Impact of XRP on crypto in general
Deaton conveyed this sentiment in response to a post by crypto influencer Wendy O, who suggested that the crypto sector benefited from the regulatory challenges faced by XRP and Ripple with the SEC. Wendy O implied that these struggles contributed to greater clarity within the industry.
Additionally, the founder of Crypto Law, Deaton, pointed out that Ripple was fortunate to receive support from LBRY, a decentralized content-sharing platform. It is noteworthy that LBRY encountered a lawsuit from the SEC in 2021 due to the sale of its LBRY credits without proper securities registration, drawing parallels to the allegations against Ripple. This legal dispute, known as SEC v LBRY, gained significant prominence in the crypto sector.
Ultimately, the SEC emerged victorious in the lawsuit, as a U.S. judge ruled that LBRY’s tokens did indeed qualify as securities. Despite this outcome, Deaton commended CEO Jeremy Kauffman for persevering in their endeavors to advocate for clear regulatory guidelines pertaining to classifying crypto tokens as securities, aiming to achieve regulatory transparency.
Possible SEC appeal setback
It’s worth mentioning that Deaton has been actively engaged in the Ripple and SEC case, offering his insights on the matter. Notably, after the ruling, the SEC announced plans to appeal the decision after expressing dissatisfaction with the initial outcome.
According to a report by Finbold, Deaton believes that the SEC’s appeal will not pose a setback for Ripple. From his perspective, the appeal process might extend before reaching a conclusive resolution.
The attorney emphasized that the recent legal victory of Ripple and XRP is vital for both the company and its XRP holders. He highlighted the potential ramifications and expressed confidence in the defense’s ability to counter the SEC’s allegations.
