Deaton Mocks SEC, Claims SEC is Not Fully Disclosed in its Primary Focus in the Lawsuit Against Ripple

Ripple Expands Into France And Sweden With Its ODL Division
Ripple Expands Into France And Sweden With Its ODL Division

The XRP community has studied the SEC’s most recent motion in light of the agency’s denial to allow I-Remit and TapJets to submit amicus papers in support of Ripple in the ongoing lawsuit. The SEC is being mocked by attorney Deaton, who claims that the SEC is lying about its primary focus in the lawsuit against Ripple.

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Unexpectedly, some Ripple enthusiasts found something intriguing in the motion, which questions whether the SEC is only interested in showing that Ripple’s XRP distribution qualifies as a security or whether all XRP sales, including those on the secondary market, are also considered to be securities.

The Securities and Exchange Commission denied the fresh third parties’ application to submit amicus briefs in Ripple’s defence, stating:

“Indeed, movants do not and cannot explain how Defendants being required to register their XRP distributions – the outcome the SEC is seeking to enforce – would prevent movants from using XRP or otherwise impact movants’ businesses.” 

Reactions to SEC’s Recent Comment 

Discussions over the SEC’s remarks have been going on among supporters of Ripple. The SEC’s statement that Ripple’s XRP distribution is the outcome it wants to enforce caught the attention of the cryptocurrency community. 

Many people assume that the Securities and Exchange Commission is no longer dedicated to investigating XRP sold on secondary markets in light of the comments.

Attorney Deaton’s Response to SEC’s Comment.

Attorney John Deaton, the founder of Crypto Law, commented on the situation and pointed out that the SEC’s most recent statement conflicts with what it said in its application for summary judgment.

An example from the SEC’s move for summary judgment states:

“A purchase of XRP is an investment in a common enterprise with other XRP holders and with Ripple. All units of XRP are fungible with each other, and the price of all units of XRP rise or fall equally.”

Attorney Deaton claims that the SEC tacitly suggested that all XRP purchases, including those made on secondary marketplaces, are securities.

SEC’s Concern About Ripple False? 

Deaton stated that the SEC is misrepresenting itself by asserting that it is only interested in sales of Ripple’s XRP and not sales of the cryptocurrency asset on the secondary market. Deaton is the attorney for over 72,000 people in a case against the SEC.

Deaton asserts that if the SEC’s assertion were accurate, the organization would have investigated each transaction involving the selling of XRP by Ripple.

“Instead, they say all XRP sales but trust us, we will give exemptions in the secondary market,” Deaton concluded.