Although XRP has a large number of advocates in its lawsuit against the United States Securities and Exchange Commission (SEC), there are some people who have taken the SEC’s side and are persuaded that XRP is a security.
People with these viewpoints have been vocalizing them in the Twitter comments section of crypto lawyer and XRP backer John E. Deaton, who has been an evangelist for Ripple from the very beginning.
What Deaton’s Question is
Therefore, Deaton has presented them with a perplexing question. The issue that needs to be answered is why, if XRP was so obviously security, the SEC did not require Ripple to cease selling it after SEC enforcement attorneys reviewed XRP in a document that was dated June 13, 2018.
They did not even recommend sending Ripple a cease and desist letter or pursuing legal action if the company did not stop offering illicit securities. The lawyer continued by asking why the SEC had allowed Ripple to take advantage of the public and dump on us if it was so evident and clear that they had done so. Why would they make it possible for Ripple to purchase 9% of MoneyGram and then provide XRP to MoneyGram, which MoneyGram would then sell to the general public?
Notably, the regulatory body filed a lawsuit against Ripple in 2020 for selling unregistered securities, which is XRP. This means that the litigation has been pending for more than two years at this point.
CEO Brad Garlinghouse of Ripple has said that the financial technology company is not going to reach a settlement with the SEC. The CEO believes that a verdict on the case will be issued before the end of the year.
Ripple is presently battling SEC on behalf of the entire industry, so let’s hope they emerge victorious.