Yesterday, Pro-XRP lawyer John Deaton tweeted about a significant victory that the XRP community has achieved in the ongoing legal dispute between Ripple and the SEC.
Attorney Deaton claims that due to the amici brief he submitted on behalf of the community, the Securities and Exchange Commission was compelled to acknowledge that XRP is a “software code.”
He revealed the following after a Twitter user sided with self-proclaimed Bitcoin creator Craig Wright in describing XRP as a scam and a security. Deaton replied with the expression “the pot calling the kettle black” when Wright called XRP a scam.
Wright, who was offended by the remark, instantly blocked Deaton on Twitter. A Twitter user going by the handle D**tyDingo Crypto described the incident and said that Chris Larsen, a co-founder of Ripple, “admitted” in 2012 that the token was a security.
Deaton responded by saying it doesn’t matter if the XRP offering and sale by the founders of Ripple were in violation of American securities laws. He argued that the current version of XRP, particularly secondary market transactions, is not a security.
“Whether the Ripple founders violated securities laws at some point is irrelevant to what XRP is today,” he said.
According to Deaton, the legal status of Bitcoin now has nothing to do with whether Satoshi Nakamoto, the creator of the cryptocurrency under the pseudonym BTC, initially broke any American security laws.
He stated, “Let me quote what we forced the SEC to admit: “Stripped down, XRP is software code.” XRP, like gold, BTC, groves, etc., can be offered and sold as a security. Whether the Ripple founders violated securities laws at some point is irrelevant to what XRP is today.”
Read also: Enjoy the Perks of XRP Payments with Bit2Me’s Debit Card
Magnificent Win For Deaton
With regard to the SEC’s assertion that XRP secondary market transactions are securities, solicitor Deaton has been a pain on the SEC’s side. In the Ripple v. SEC lawsuit, the founder of Crypto Law has submitted an amici curiae brief challenging this claim.
A key victory over the SEC in the LBRY lawsuit was recorded by attorney Deaton last month. Fxcryptonews reported that Deaton, who represented tech journalist Naomi Brockwell, persuaded the judge that secondary market transactions of LBRY Credits (LBC) are not securities.
Intriguingly, Deaton also compelled the Securities and Exchange Commission to acknowledge that LBC secondary market transactions are not securities officially. As it may be cited in upcoming securities cases involving cryptocurrencies, the decision is seen as a huge victory for LBC holders and the overall cryptocurrency industry.
