John E. Deaton, a renowned legal expert and advocate for Ripple and its native cryptocurrency XRP, recently brought attention to a critical use case of cryptocurrencies: cross-border payments. Deaton highlighted that Ripple had been championing this aspect of digital assets since 2015, significantly earlier than the wider market adoption seen today.
Speaking of the developments and the ongoing Ripple vs. SEC case, Deaton tweeted:
Lately, the number one use case I hear regarding crypto, including #Bitcoin, is for cross border payments. @Ripple was saying this in 2015. Despite @Ripple’s impressive international growth, you simply cannot underestimate the damage the case has caused to Ripple and #XRP.— John E Deaton (@JohnEDeaton1) June 26, 2023
Deaton’s statement arrived amidst the legal turbulence Ripple is currently navigating in a lawsuit filed by the US Securities and Exchange Commission (SEC). The case has sparked significant speculation and rumor within the cryptocurrency community, fueled in part by inconsistent messaging from the SEC’s leadership. This discord has amplified uncertainty around the case’s trajectory and potential outcomes.
In his tweet, Deaton articulated the detrimental impact of the SEC lawsuit on Ripple and XRP. He emphasized that, despite Ripple’s impressive international growth – which includes the recent acquisition of an In-Principle Approval of a Major Payments Institution License from the Monetary Authority of Singapore (MAS) – the damaging effects of the case should not be underestimated.
Previously, Ripple’s legal team, led by Chief Legal Officer Stuart Alderoty, has expressed similar frustrations. Alderoty criticized the SEC’s handling of the lawsuit, invoking the US Electronic Code of Federal Regulations. This legal framework necessitates impartial conduct from government employees, a standard, which Ripple alleges the SEC has failed to meet.
Ripple’s critique specifically targeted former SEC division director Bill Hinman and current SEC chief Gary Gensler, who stands accused by Ripple’s legal team and the broader community of exhibiting bias against Ripple and XRP.
In response to Alderoty’s allegations, Deaton tweeted that Gensler has been non-compliant with requests for documentation while concurrently maintaining a confrontational stance towards Ripple and XRP. This has stoked further concerns about the impartiality of the SEC’s handling of the case.