The US Securities and Exchange Commission has made a number of arguments aimed at improving its chances of a legal victory over Ripple Labs. Nothing is more outrageous and ignorant, according to a legal expert, than the argument that XRP lacks utility. Attorney John Deaton believes this is the best example of the ignorance that prevails in the SEC’s handling of cryptocurrencies.
Deaton Believes Judge Netburn Understands XRP More Than SEC
Deaton is the founder of the Deaton Law Firm, but he is best known in the crypto community as the founder of Crypto Law, a repository for US legal and regulatory news and digital asset analysis. He is particularly involved in the XRP community and is one of the digital asset owners who filed for intervention in the SEC vs Ripple case.
In a blog post on July 7th, the legal expert dealt with one of the “worst allegations” of the US Securities and Exchange Commission.
In the March 19 trial, SEC lawyer Jorge Tenreiro argued, “Now, the court referenced a utility for XRP. We dispute whether that utility actually exists, your Honor.”
Deaton believes that for beginners, even presiding judge Sarah Netburn proves she knows the benefits of XRP better than the SEC. Judge Netburn said that as she understood digital assets not only have monetary value but also have utility. I think this benefit sets it apart from Bitcoin and Ethereum.
“If Judge Netburn and millions of XRP holders, along with companies like Ripple, BitPay, Spend the Bits, Japan’s SBI and others all recognize the utility of XRP, it seems the SEC is the outlier.”
Legal Expert: SEC’s Argument Against XRP is Meaningless
Legal experts believe that XRP has proven useful over the years. Its open-source nature allows users to pay for goods and services without relying on Ripple in any way.
According to Cryptwerk, more than 1,300 companies now accept the crypto for payments. They range from web hosting and other web services to travel, gambling, travel, entertainment, and more.
Deaton claims to have contacted more than 19,000 XRP owners from around the world: “many of whom receive paychecks in XRP and use XRP-powered debit cards to shop for groceries and pay for gas. These people are not in “common enterprise” with Ripple, despite the SEC’s claims.”
The attorney also cited a Stedas Crypto survey in which more than 90% of more than 4,000 respondents said they don’t believe they own shares in Ripple just because they own cryptocurrency.
The argument of the US Securities and Exchange Commission that there would be no XRP without Ripple is not only flawed but also meaningless.