Pro-XRP Lawyer Unveils How SEC and Competitors Aligned Against Ripple

Prominent Attorney John Deaton Highlights SEC’s Impact on Ripple and XRP

In a recent statement, attorney and vocal XRP advocate John E. Deaton shed light on the contentious relationship between the U.S. Securities and Exchange Commission (SEC) and Ripple. Deaton suggested that a coordinated effort may have been orchestrated by Ripple’s competitors to weaken the company and its digital asset, XRP.

The Ripple Lawsuit and Its Broad Implications

Deaton discussed the extensive consequences of the SEC’s lawsuit on Ripple’s business. He remarked that it is difficult to fully quantify the damage caused by the sweeping nature of the SEC’s complaint. He further provided historical context, highlighting that in 2012, when Ripple’s founders created XRP, stablecoins were non-existent, and the cross-border payments market was a wide-open field ripe for disruption. He pointed out that this immense market potential still exists today.

The attorney reflected on Ripple’s pivotal decision during its early days to focus on cross-border payments instead of smart contracts. He shared an interesting anecdote from this era, noting that Ethereum co-founder Vitalik Buterin was at one point residing with Ripple’s then-CTO, Stefan Thomas. Ultimately, Ripple’s leadership opted to tackle the global cross-border payments market, a decision Deaton deemed strategic given the lack of stablecoins at the time and the sector’s untapped growth opportunities.

Cross-Border Payments: Ripple’s Strategic Focus

To emphasize the importance of Ripple’s focus, Deaton cited data on the exponential growth of cross-border payment flows. By 2022, these transactions had exceeded $150 trillion, representing more than 96% of total cross-border payment volumes. Projections suggest this figure could skyrocket to $250 trillion by 2027, fueled by factors like expanding international trade, global e-commerce, and the growing mobility of individuals and businesses.

Deaton also referenced key milestones that initially drove XRP adoption. After listing XRP in February 2019, Coinbase promoted its efficiency in enabling international money transfers in seconds and with minimal cost. Additionally, MoneyGram, a leader in remittance services, began utilizing XRP in June 2019. These developments significantly boosted Ripple’s position in the payments industry.

Shift in Narrative After the SEC Lawsuit

However, the tide shifted dramatically in December 2021 when the SEC filed its lawsuit against Ripple. Following this, Coinbase delisted XRP, and MoneyGram discontinued XRP usage, switching to Stellar’s XLM instead. Deaton questioned the legal distinction between MoneyGram utilizing XLM over XRP, noting the irony that XLM’s founder, Jed McCaleb, was also a co-founder of Ripple and played a role in XRP’s creation.

Criticizing the SEC’s case, Deaton described the complaint as "excessively broad," calling it one of the most over-reaching lawsuits ever filed by the regulatory body. He also raised concerns about potential conflicts of interest, asserting that individuals involved in initiating the lawsuit later shifted their allegiance to Ripple’s competitors.

Deaton remarked, “Those who pushed for the case against Ripple to be filed later went on to work with or for Ripple’s competitors. This raises serious questions about the motives behind the lawsuit.”

Addressing Skepticism About Conflicts of Interest

Responding to skepticism regarding his stance, Deaton disclosed details about his financial independence. He clarified that 80% of his net worth is held in Bitcoin and emphasized his objectivity. He added that although he has been critical of Ripple’s internal practices, the circumstances surrounding the lawsuit—including conflicts of interest and its questionable execution—are significant enough to warrant scrutiny.

Closing Thoughts and XRP’s Position in the Market

Despite the ongoing legal battle, XRP continues to maintain its relevance in the crypto market. At the time of writing, the digital asset was trading at $2.12, supported by mounting adoption and the projected growth of the cross-border payments industry.

Deaton concluded by reiterating concerns about the SEC’s motivations and emphasizing the importance of accountability, regardless of personal biases.

This ongoing battle between Ripple and the SEC serves as a defining moment for the cryptocurrency industry, with potential long-term implications for digital assets and regulatory frameworks.