A known lawyer in the crypto community, John Deaton, has pushed for a dismissal of the Ripple vs. SEC lawsuit alongside other notable crypto cases enforced under the Gary Gensler-led SEC administration. His outcry elicited a massive reaction from the crypto community, particularly the XRP army.
Deaton’s comment comes amid Donald Trump’s inauguration ceremony set to take place today, January 20. On this note, Deaton stressed that it is time to end all non-fraud-related crypto cases including that of Ripple Labs.
Deaton Pushes for Lawsuit Dismissal
In a lengthy post on X (formerly Twitter), Deaton, the founder of Crypto Law, expressed his concerns about the general crypto industry and the SEC under Gensler, which stifled growth, and chased several companies away from doing business in the country.
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Deaton described the SEC’s action against the industry as a “waste of time, energy, money, and resources,” citing several companies, including Ripple, Coinbase, Kraken, and LBRY, that the regulatory body pursued in the last four years.
Moreover, Deaton cited that Ripple has spent $150 million in its fight with the SEC. He added that Ripple co-founders, Brad Garlinghouse, and Chris Larsen were also sued by the regulators in an attempt to “intimidate them.” However, the cases were dismissed because the SEC lacked merit in its argument.
SEC Scrutiny Hurt Investors and Exchanges
Deaton continued by pointing out the damages caused by the long-running lawsuit. According to him, the market incurred over $15 billion in losses which led to more than 75,000 investors joining the case, lending their voices to the call for favorable regulations and an end to stringent policies.
Furthermore, he highlighted how delisting XRP hurt investors, noting that several retirement accounts holding XRP were frozen. As a result, some American businesses shied away from working with Ripple out of fear of a clampdown from the SEC.
Ultimately, Deaton stressed the need for the case dismissal especially since a new “Golden Age of innovation” is set to be introduced led by Donald Trump.
“If a new Golden Age of innovation is indeed upon us, coupled with the incoming President of the United States utilizing the technology in a manner some might argue pushes legal boundaries more aggressively than any of the companies above have, all non-fraud cases including, Ripple, coinbase, krakenfx, and dragonchain, etc. need to be dismissed” he said.
A dismissal of these cases will bode well for the companies involved and the broader crypto industry. It could also pave the way for building trust in the system and allowing companies to adhere to favorable regulatory conditions while pushing innovation.
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