John E. Deaton, a candidate for the U.S. Senate in Massachusetts, has strongly criticized the SEC’s recent decision to appeal a District Court ruling in the Ripple case involving XRP. Deaton, a prominent legal advocate for XRP holders, highlighted his extensive pro bono work and personal financial commitment—spending hundreds of hours and over $75,000 of his funds—fighting what he describes as “gross overreach” by the SEC on behalf of 75,000 XRP token holders.
Deaton explained that his primary request to the SEC was straightforward: to ensure that for XRP specifically, it is not a security. He stated that this should not have been a difficult decision, citing the Telegram case, where Castel ruled that the Gram token is identical to the alphanumeric code found in Bitcoin. Deaton also referred to 75 years of case law, saying that when an asset is marketed or sold as part of a security offering, no matter what it is, condos, chinchillas, or Bitcoin, it is a non-security.
He said that the SEC’s arguments in the case of Ripple are ridiculous and imagine that oranges from the Howey landmark case remain considered unregistered security, even if a consumer buys them without knowledge of the company. Deaton explained that the SEC did not give any precedent for arguing that XRP was a security.
Also Read: SEC Appeals Judge Torres Ruling on XRP Classification, What Does this Mean for XRP?
Federal Judge Confirms XRP Is Not a Security
Deaton noted that a federal judge appointed by President Obama agreed with those legal arguments and decided that XRP is not a security, as Deaton had forecast on live TV. Moreover, the judge, presiding over the discovery in the case accused the SEC attorneys of not being loyal to the law; Deaton tagged the lawyers’ actions as unethical.
He also took the public through past events, such as when a federal judge reproached SEC lawyers in other cases, including the Debt Box case. According to Deaton, the SEC has not changed, and its continued focus on this case aligns with an anti-crypto agenda that costs taxpayers a lot of money while reducing the agency’s integrity.
Ripple Case Highlights SEC’s Controversial Approach to Crypto Regulation
John E. Deaton is engaged in the Ripple case, as he understands that it is an example of the SEC overaction in the cryptosphere. His bid to represent Massachusetts in the U.S. Senate adds more focus on the extended legal battle relating to XRP and other digital assets’ classification.
With Ripple holding firm on its position that XRP is not a security and multiple court rulings supporting this stance, Deaton argues that the SEC’s decision to appeal prolongs unnecessary legal uncertainty. As the legal battle continues, the case is a focal point in the broader conversation about crypto regulation and the SEC’s controversial approach.
Also Read: John Deaton Wins GOP Primary, Set to Challenge Senator Elizabeth Warren
