SEC-Ripple Legal Battle Delays XRP Adoption by 3 Years, Claims Attorney

The legal battle waged by the United States Securities and Exchange Commission (SEC) against Ripple in December 2020 has, according to pro XRP lawyer John E Deaton, significantly impeded the progress of XRP adoption in the United States. Deaton aired his observations in a recent discourse on the X platform, formerly known as Twitter.

Deaton’s remarks emerged in the wake of Coinbase’s announcement regarding its acquisition of a minority stake in Circle, the issuer of USD Coin (USDC). The exchange’s intention to enhance the utility and expand the USDC ecosystem spurred the lawyer’s reflections on how Ripple and its native token XRP were poised for substantial growth in the realm of cross-border payments. He speculated that, absent the SEC lawsuit, prominent platforms like Coinbase might have showcased parallel interest in Ripple.

The advocate for XRP noted the pivotal role that Coinbase played in promoting the token prior to the lawsuit, pointing out that the legal action forced the cryptocurrency exchange to delist XRP.

Deaton highlighted that Coinbase meticulously conducted its due diligence, going so far as to engage with the SEC to ascertain XRP’s regulatory status before listing it. In a meeting held in January 2019, Coinbase apprised the SEC of its comprehensive evaluation of XRP based on a rigorous regulatory framework for digital assets – a framework that even a senior SEC staff member had publicly commended Coinbase for adopting.

At that juncture, the SEC did not express any objections to Coinbase’s proposition, allowing the exchange to list XRP in February 2019. This trend carried over to MoneyGram, a notable payment processor and a significant partner in Ripple’s remittance endeavors. MoneyGram filed documentation with the SEC detailing its intent to leverage XRP, an action that didn’t raise any opposition from the regulatory body.

Deaton asserted that it was evident that “MoneyGram also determined, just like Coinbase’s lawyers, and just like the SEC enforcement lawyers in June 2018, that XRP was NOT a security.” Nevertheless, despite the prudent steps taken by Ripple’s associates, the SEC initiated a lawsuit against the company in December 2020.

The lawyer advocating for XRP contended that Ripple’s lawsuit had been weaponized, asserting that “all the evidence uncovered during the last 3 years proves it to be true.” He concluded by acknowledging that despite Ripple’s noteworthy accomplishments outside the U.S., the lawsuit had undeniably cast a shadow on XRP’s adoption trajectory. Notably, on July 13, a judge in the New York District Court, Analisa Torres, issued a partial ruling in favor of Ripple Labs, affirming that XRP transactions on digital asset exchanges do not constitute securities.

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