XRP Lawyer Challenges SEC’s Inconsistencies, Urges Clarity in Ripple Lawsuit.
In an ongoing Ripple lawsuit, XRP lawyer John Deaton has strongly criticized the U.S. Securities and Exchange Commission (SEC) for its alleged double standards and lack of regulatory clarity within the cryptocurrency industry. Deaton, who is known for his support of Ripple and the founder of Crypto-Law.US, voiced his concerns on Twitter regarding the SEC’s treatment of Ripple and its CEO, Brad Garlinghouse. TronToday reported that both the XRP community and attorney Bill Morgan share the frustration over the delay in Judge Torres’ ruling on the case.
Deaton supported the notion of implementing “know your customer” (KYC) measures for improved security and centralization within the crypto industry. He stressed the importance of significant token holders revealing their identities and the proportion of token supply they possess.Deaton also pointed out that Ripple Labs had already taken steps towards transparency by implementing cryptographic escrow and publishing quarterly reports on XRP sales. However, he argued that the SEC used this very transparency against Ripple and Garlinghouse during the legal proceedings.
SEC’s Inconsistent Standards: A Closer Look At Ripple VS. Ethereum In XRP Lawsuit
An intriguing aspect of Deaton’s criticism pertained to a speech made by William Hinman, the former director of the SEC’s Corporation Finance division, in 2018. Deaton highlighted that Hinman, when asked about the number of Ether tokens held by Ethereum co-founders Joseph Lubin and Vitalik Buterin, testified that the SEC had access to the information but couldn’t recall specific details regarding token ownership. Deaton suggested that the SEC’s standards appeared inconsistent when comparing Ripple and Ethereum.
The XRP lawsuit has been in progress for a considerable period and awaits a summary judgment. However, recent revelations of documents and emails related to the Hinman speech have sparked optimism that the lawsuit may soon reach a resolution. Additionally, reports have indicated a potential favoritism by the SEC towards Ethereum over other cryptocurrencies. While Bitcoin and Ethereum were previously classified as commodities exempt from regulatory actions, SEC Chairman Gary Gensler hinted that Ethereum could potentially be classified as a security. In response to these developments, Deaton reaffirmed his belief that XRP should not be considered a security.
The Ripple community and Ripple supporters eagerly anticipate further updates on the lawsuit, as they hope for regulatory clarity from the SEC. The outcome of this case will likely have significant implications for the broader cryptocurrency industry as it continues to evolve.