John Deaton has started a thread on Twitter in which he draws attention to the steps that the SEC has taken against cryptocurrency and encourages other users to the challenge of defending these actions.
The attorney made reference to the controversial statement given by William Hinman, in which he said that a digital asset is more comparable to security and that promoters sell them as part of an investment to those who do not utilize the asset themselves.
He continued by saying that XRP did not correspond with what Hinman had described. According to the SEC’s 2019 Framework for Digital Assets, a cryptocurrency is not likely to fulfill the Howey test if it can be used straight away to make payments in a broad range of settings, or if it operates as a replacement for actual (or fiat) cash.
Furthermore, Deaton said that in 2015, FinCEN and the DOJ reached a settlement with Ripple regarding the classification of XRP as a convertible virtual currency. In the same year, the CEO of Ripple at the time demonstrated the usefulness of XRO in front of the SEC, the CFTC, the US Treasury, and the Federal Reserve.
According to Deaton, the Securities and Exchange Commission (SEC) only charged Ripple for selling unregistered securities because it felt like it. The regulatory agency has not provided any proof that might be considered reasonable, and at this point, they are only dragging their feet in the complaint.
Ripple CEO Brad Garlinghouse has expressed confidence in the company’s chances of success in the litigation, and he expects a final verdict to be rendered before the end of the year.
Meanwhile, XRP’s value has been steadily rising. As of this writing, the token has increased in value by 9% over the previous week and by 3% over the previous 24 hours.