• 29 May, 2024
News

XRP Lawyer Lauds Ripple’s Tenfold Growth Amid SEC Challenges

Legal commentator John E Deaton recently took to social media to discuss Ripple’s impressive growth over the past three years despite facing regulatory challenges from the U.S. Securities and Exchange Commission (SEC). Deaton highlighted that Ripple managed to expand its business nearly tenfold in a bearish cryptocurrency market, setting it apart from other companies in the sector.

According to Deaton, while many firms were downsizing, Ripple was actively hiring. He attributed this resilience to the company’s strong leadership and strategic decisions, even as it contended with SEC allegations. He added that although he initially believed Ripple sold XRP as an investment contract, gradually it became clear to him that the XRP should not be classified as a security.

Deaton also touched upon the broader regulatory landscape, highlighting the inconsistencies in the SEC’s approach. While Ripple and other companies like LBRY faced legal challenges, some entities appeared to have easier access to regulators. Deaton cited the example of FTX, whose founder, known as SBF, reportedly made a $10 million contribution to gain access to regulatory bodies. This was confirmed by Caroline Ellison’s testimony during the SBF trial.

Furthermore, Deaton also pointed out the financial toll of these legal battles. Ripple spent over $100 million in legal fees, while LBRY was pushed to the brink of bankruptcy. In contrast, the SEC’s years-long investigation into LBRY resulted in a mere $140,000 fine, leading to the dissolution of the company and job losses.

In his concluding remarks, Deaton expressed relief that Ripple appears poised to not only survive the regulatory scrutiny but also become a global fintech leader. He commended Ripple’s CEO, Brad Garlinghouse, for his role in guiding the company through these turbulent times, speculating that Garlinghouse could be a strong contender for CEO of the decade should Ripple go public in the next three years.

Amidst this backdrop, John E Deaton has also been vocal in critiquing the SEC’s overall approach to cryptocurrency regulation. As previously reported, Deaton questioned the SEC’s credibility and referred to Appellate Court rulings that found the SEC’s actions to be “arbitrary and capricious.” He emphasized that independent judges serve as a more reliable source of oversight and can offer an unbiased view of the SEC, adding another layer of complexity to the ongoing Ripple lawsuit.

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