Pro-XRP attorney John Deaton recognized the significant influence XRP holders had on the outcome of the SEC’s lawsuit against Ripple. This acknowledgment coincides with the third anniversary of Judge Analisa Torres’ key ruling on July 13, 2023, which determined that XRP is not a security in itself.
Court Decision Highlights
Deaton pointed to Judge Torres’ citation of the amicus brief he filed for thousands of XRP investors as a key indicator of their impact. However, he clarified that this alone does not definitively prove that the community affected the ruling, as numerous other amicus briefs were also referenced.
Notably, Judge Torres referenced almost 4,000 affidavits from XRP holders in her summary judgment. This documentation bolstered Ripple’s claim that many XRP buyers did not depend on the company’s efforts to profit, a crucial element in assessing securities under the Howey test. The case saw thousands of exhibits filed, yet the judge chose only a select few for her decision.
Additionally, Deaton mentioned that arguments from the LBRY case influenced the court’s perspective. Judge Torres cited discussions related to the secondary market sales of digital assets, indicating a broader consideration of legal principles in her analysis.
Amicus Brief and Legal Arguments
Deaton’s amicus brief made a strong case for a formal declaration that XRP is not a security. He emphasized that XRP should be viewed as digital code, similar to assets like gold and real estate, rather than being classified as securities based solely on marketing methods. Even if XRP is sold in certain contexts that resemble investment contracts, Deaton argues that such conditions should not determine its classification.
As the XRP community continues to advocate for clarity in the legal status of digital currencies, the acknowledgment from legal experts like Deaton may further bolster their position in ongoing discussions surrounding cryptocurrency regulation.
This material is informational and should not be considered financial advice.
