XRP News: John E. Deaton Explains Ripple's Fierce Fight Vs SEC and Competitors

Bittime - In a post on X, prominent pro-XRP lawyer, John E. Deaton, explains the complicated dynamic between the US Securities and Exchange Commission (SEC) and Ripple's competitors. Deaton pointed out the existence of a coordinated effort to undermine the company and its digital assets.

He emphasized the broad impact of the SEC's lawsuit against Ripple, stating, “I'm not sure one can properly estimate the damage to Ripple's business caused by the broad nature of the SEC's complaint against Ripple.”

In historical context, Deaton noted that when Ripple's founders created XRP in 2012, the cross-border payments market was wide open and ready for disruptive technology.

Deaton also recalled significant debate within Ripple over whether they should prioritize smart contracts or payments. He revealed that the decision to focus on cross-border payments was the right strategic move, given the absence of stablecoins at the time and the huge potential of the global payments market.

Data shows that cross-border payment transactions surpassed $150 trillion in 2022 and are projected to reach $250 trillion by 2027. This growth is driven by the expansion of international trade and increased mobility of individuals and businesses across borders.

Also read: Ripple (XRP) Coin Price Will Recovery, This is a Sign!

Impact of SEC Lawsuit on Ripple

However, the narrative changed dramatically when the SEC filed a lawsuit against Ripple in December 2020. Deaton noted that following the lawsuit, Coinbase removed XRP from its platform, and MoneyGram switched from using XRP to XLM.

He questioned, “Is there any real difference, UNDER THE LAW, between MoneyGram using XLM rather than XRP?” Interestingly, the founder of XLM, Jed McCaleb, is also the co-founder of Ripple and XRP.

Deaton characterized the SEC's complaint as overly broad and indicative of a potential conflict of interest, in that the individuals involved in the suit later worked for Ripple's competitors.

Deaton emphasized that although he is not a fan of Ripple, it is important to highlight the conflict of interest that exists. He explained that 80% of his net worth is in Bitcoin, suggesting that his financial interests are not tied to Ripple.

Against this backdrop, Deaton concludes that the situation surrounding the SEC lawsuit indicates an injustice that needs to be called out. The legal saga between Ripple and the SEC continued, with a landmark decision being made on July 13, 2023, when Judge Analisa Torres ruled that XRP is not a security.

However, the SEC filed an appeal on October 17, keeping the case in the public eye.

Ripple's Competitors and Their Impact

In the context of competition, Deaton highlighted that many of Ripple's competitors are trying to use this situation to their advantage. With the legal uncertainty facing Ripple, competitors such as Stellar (XLM) and others are seeking to attract the attention of investors and users who were previously interested in XRP.

Deaton noted that the SEC's action could give an unfair advantage to Ripple's competitors, which could affect Ripple's position in the digital asset market.

Deaton also cautioned that although Ripple faces major challenges, the market potential for cross-border payments remains enormous. With the projected growth in international transactions, Ripple still has opportunities to adapt and thrive despite the difficult situation.

He emphasized the importance of community and investor support to help Ripple get through these difficult times.

Also read: Trading Volume Skyrocketing, XRP Price Could Rise in 2025?

Conclusion: The Future of XRP and Ripple

With the ongoing developments in the legal case between Ripple and the SEC, XRP news will continue to be in the spotlight among investors and market watchers.

John E. Deaton, as an important voice in the XRP community, continues to provide valuable insights into these dynamics, highlighting the challenges Ripple faces and the impact it could have on the digital asset industry as a whole.

While there are many hurdles ahead, the potential for innovation and growth within the cross-border payments sector remains promising, and Ripple strives to stay relevant amidst intense competition.

FAQ

What is XRP?

XRP is a digital asset developed by Ripple Labs, designed to facilitate fast and low-cost cross-border payments. XRP aims to be the solution to liquidity issues in international transactions.

Who is John E. Deaton?

John E. Deaton is a pro-XRP lawyer known for his involvement in the legal case between Ripple and the US Securities and Exchange Commission (SEC). He provides insight into the impact the SEC lawsuit could have on Ripple and the digital asset industry as a whole.

What happened between Ripple and the SEC?

Ripple is facing a lawsuit from the SEC claiming that XRP is an unregistered security. The case has caused uncertainty in the market and affected the value of XRP, while John E. Deaton argued that the lawsuit has potential conflicts of interest and is too broad.

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References

mitrade.com, Pro-XRP Lawyer Deaton Reveals How SEC And Competitors United Vs. Ripple, accessed on January 2, 2025.

coinpedia.org, XRP Lawsuit: Deaton Reveals How Industry Leaders, SEC and Competitors United Against Ripple, accessed on January 2, 2025.

Author: AWW