The U.S. Securities and Exchange Commission (SEC) backing out of its appeal against Ripple is the “final confirmation” that XRP is a digital commodity rather than a security, according to crypto attorney John Deaton.
Deaton emphasized that although Ripple still faces a $125 million penalty related to its past sales of XRP, the company may now have a stronger position to negotiate a lower settlement following the SEC’s dropped appeal.
As a well-known advocate for XRP holders, Deaton previously argued that their interests were overlooked in the SEC’s case against Ripple. He later entered the political arena, challenging Senator Elizabeth Warren—a vocal critic of crypto—for a Massachusetts Senate seat.
Will Ripple Abandon Its Cross-Appeal?
A key question moving forward is whether Ripple will continue pursuing its cross-appeal, which was initially filed in October 2024. Deaton believes the SEC is eager to avoid this appeal, as a ruling in Ripple’s favor could weaken the agency’s authority and impact similar cases.
This situation gives Ripple significant leverage in settlement discussions. “Everything has shifted,” Deaton stated. “The political landscape has changed, the industry has evolved, and the SEC has completely reversed course on its crypto stance. Why should Ripple still be expected to pay $125 million?”
However, one major hurdle remains—the injunction imposed by Judge Analisa Torres, which prevents Ripple from selling XRP to institutional investors to avoid breaching securities regulations.
“If Ripple intends to issue XRP directly to American banks, the main challenge is working around that injunction,” Deaton noted.
Ripple Case Was an Attack on Crypto
Reflecting on the initial lawsuit, Deaton described it as a broader attack on the crypto sector:
“When this case was first filed, I saw it as an industry-wide assault—a heavy-handed attempt to suppress crypto. I was sure it wasn’t just about Ripple; it was a warning shot from traditional finance, the banking system, and figures like Elizabeth Warren and Gary Gensler who oppose the industry.”
Deaton also pointed out that Ripple remained in the U.S. despite the SEC’s lawsuit, which could work in its favor.
“Brad Garlinghouse can say, ‘We were sued by the U.S. government, yet we stood our ground. Ripple is an American company—we never abandoned the country.’ That could play well for Ripple moving forward,” he added.
For more news, find me on Twitter Giannis Andreou and subscribe to My channels Youtube and Rumble
What is your opinion on this particular topic? Leave us your comment below! We are always interested in your opinion!
