Attorney Deaton Says SEC Is Fibbing About Its Major Focus In Lawsuit Against Ripple
Following the SECās refusal to allowI-Remit and TapJets to file amicus briefs supporting Ripplein the ongoing lawsuit, the XRP community has examined the agencyās recent motion.
Surprisingly, some Ripple enthusiasts found something interesting in the motion, which borders on whether the SEC is only focused on proving Rippleās XRP distribution as security, or all XRP sales, including secondary market sales.
While rejecting the new third-parties request to file amicus briefs in support of Ripple, the Securities and Exchange Commission said:
āIndeed, movants do not and cannot explain how Defendants being required to register their XRP distributions ā the outcome the SEC is seeking to enforce ā would prevent movants from using XRP or otherwise impact movantsā businesses.ā
XRP Community Reacts to the SECās Recent Motion
The SECās comments have been a topic of discussion among Ripple enthusiasts.
Ripple enthusiasts were focused on the part where the SEC noted that Rippleās XRP distribution is the outcome it wants to enforce. Based on the statement, many believe that the Securities and Exchange Commission is no longer committed to probing XRP sold on secondary markets.
Attorney Deaton Bashes the SEC
Commenting on the issue, attorney John Deaton, founder of Crypto Law, noted that the SECās recent statement contradicts what it stated inits summary judgment motion.
āA 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,ā an excerpt of the SECās summary judgment motion stated.
Attorney Deaton said the SEC indirectly implied that any purchase of XRP is a security that includes all XRP coins, including those obtained from secondary markets.
Deaton,the attorney representing over 72,000 in a lawsuitagainst the SEC, added that the agency is falsely claiming that it is only concerned about Rippleās XRP sales and not the crypto assetās secondary market sales.
According to Deaton, if the SECās claim were true, the agency would have gone through all Rippleās transactions related to the companyās XRP sales.
āInstead, they say all XRP sales but trust us, we will give exemptions in the secondary market,ā Deaton concluded.