Could Be Faulty SEC! –

Renowned Blockchain lawyer John Deaton has explained the shortcomings in the SEC’s claim that Ripple and XRP are securities. In a lengthy tweet on Twitter, he backed up his claim with past statements from SEC chairman Gensler.

Lawyer John Deaton explains SEC’s flaws in Ripple claim

In a series of tweets today, John Deaton revealed the weaknesses of the SEC’s claim that XRP is a security. Deaton first quoted a 2018 provision of the US corporate finance regulation. This rule contains the following statement:

Cryptocurrency itself is simply code. However, the way it is sold by entrepreneurs as part of an investment to non-users to develop the business can be a security in this context.

Deaton said that such a statement does not match the status of the Ripple token, as a coin can only be considered a security if backers sell it to non-users as part of an investment. The lawyer also argued that thousands of XRP investors bought tokens to create a TrustLine with XRP to transfer value and receive salaries through BitPay and other vendors. He added that as thousands of merchants accept payments, many are using XRP instead of fiat currencies.

Gary Gensler previously said that PoS Blockchain tokens are securities.

Specifically, the Howey test is used to determine whether a crypto qualifies as an investment contract and subjects it to federal security laws. The SEC chairman had previously argued that PoS blockchains like Ethereum (ETH), Cardano (ADA) and Solana (SOL) could pass the Howey test. Accordingly, Deaton is referencing another provision of the law that states that a cryptocurrency is unlikely to meet the Howey Test if:

It can be used immediately or replace real (or fiat) currency for payment in a wide variety of contexts.

Meanwhile, Ripple CEO Brad Garlinghouse said he is optimistic that a decision on his legal dispute with the SEC will be reached in 2023, potentially in the first half of this year. The case concerns whether XRP should be treated as a security with significant implications for both Ripple and the broader crypto market. As we have reported, the parties submitted their final summaries in December, accusing each other of flexing the law, asking for a summary judgment on the case. Garlinghouse said he expects the decision to arrive “sometime in the next single-digit months” – potentially in June. He added that although he was open to prospects, he did not expect the company to settle the case.

How about Ripple (XRP) price?

According to CoinMarketCap, XRP maintains its position as the 6th largest cryptocurrency by market cap. It has remained stable over the last 24 hour timeframe. It is trading at $0.4231, gaining around 8% compared to last week. Despite its negative performance in recent days, it has managed to maintain its gains on a weekly scale.

Contact us to be instantly informed about the last minute developments. twitterin, Facebookin and InstagramFollow and Telegram and YouTube join our channel!

Risk Disclosure: The articles and articles on do not constitute investment advice. Bitcoin and cryptocurrencies are high-risk assets, and you should do your due diligence and do your own research before investing in these currencies. You can lose some or all of your money by investing in Bitcoin and cryptocurrencies. Remember that your transfers and transactions are at your own risk and any losses that may occur are your responsibility. does not recommend buying or selling any cryptocurrencies or digital assets, nor is an investment advisor. For this reason, and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, assets or services in this article.

Disclaimer: Advertisements on are carried out through third-party advertising channels. In addition, also includes sponsored articles and press releases on its site. For this reason, advertising links directed from are on the site completely independent of’s approval, and visits and pop-ups directed by advertising links are the responsibility of the user. The advertisements on and the pages directed by the links in the sponsored articles do not bind in any way.

Warning: Citing the news content of and quoting by giving a link is subject to the permission of No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of in violation of intellectual property law and relevant legislation.

Show Disclaimer

source site-3