The attorney Deaton always believes XRP is not a security.
Attorney John Deaton, the founder of CryptoLaw, has highlighted a single factor that proves Ripple’s cryptocurrency XRP is not a security.
According to Deaton, allowing XRP holders to convert the crypto asset into other coins such as Bitcoin, Ethereum on Coinbase, Uphold, Kraken, etc., makes XRP non-security under Howey.
“If holders of XRP maintain their XRP on an exchange such as Coinbase, krakenfx Uphold, etc., XRP holders can CONVERT XRP into ETH, BTC, LTC, BTH, or many other crypto assets. This factor alone takes XRP out of the classification of security, under Howey,” attorney Deaton said.
The attorney representing over 72,000 XRP holders in a class action against the SEC made this known, citing an excerpt from a Writ of Mandamus he wrote on January 1, 2021, nine days after the Ripple vs. SEC case was filed.
He stated that in the Howey case, investors did not own the assets in question – oranges and beavers – and, as such, could not sell nor convert them into other assets.
“In Howey and its progeny, investors didn’t have possession and control of the orangesor the beavers to sell. And They certainly couldn’t CONVERT the oranges to apples!”
Attorney Deaton noted in his 2021 Writ of Mandamus that the SEC’s lawsuit against Ripple would have been laughable if the case did not have a great economic loss on investors.
“The SEC’s overbroad claim that XRP is a security today would be laughable if it hadn’t caused catastrophic economic loss to the innocent investors the SEC is supposed to protect,” attorney Deaton added.
It is common knowledge that the SEC’s lawsuit against Ripple wreaked havoc on XRP holders who saw the value of their crypto holdings plummet massively months after the lawsuit.
Recall that major cryptocurrency exchanges operating in the United States were forced to delist XRP from their trading platform months after the suit was filed due to fears that the commission may charge them for facilitating the trading of a security. Thus, plunging the value of XRP and causing “catastrophic economic loss” to investors.
Over 72,000 XRP holders represented by attorney Deaton have filed a class action lawsuit against the SEC for their loss due to the agency’s classification of XRP as a security.
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Source: https://thecryptobasic.com/2022/09/15/attorney-deaton-says-one-factor-alone-proves-ripple-xrp-is-not-a-security/?utm_source=rss&utm_medium=rss&utm_campaign=attorney-deaton-says-one-factor-alone-proves-ripple-xrp-is-not-a-security