Attorney and XRP supporter John Deaton recently expressed his concerns about the impact of the SEC’s lawsuit against Ripple and XRP on Ripple’s business. He highlighted the fact that when XRP was created in 2012, stablecoins were not yet in existence, and the global payments market was ripe for innovation. At that time, Ripple had to decide between focusing on smart contracts or payments, ultimately choosing cross-border payments due to the market size and the absence of stablecoins.
In 2019, XRP was listed on Coinbase as a fast and affordable way to send money internationally. MoneyGram also started using XRP for transfers. However, just 18 months later, the SEC filed a lawsuit alleging that all XRP, regardless of how it was acquired, was an unregistered security. This led to Coinbase delisting XRP and MoneyGram switching to XLM for transfers.
Deaton raised questions about the legal distinction between using XRP and XLM for payments, considering that XLM’s creator, Jed McCaleb, was also a co-founder of Ripple. He criticized the broad scope of the SEC’s lawsuit and highlighted the potential conflicts of interest among those involved in pushing the case against Ripple, some of whom later went on to work for Ripple’s competitors.
The ongoing legal battle between Ripple and the SEC has had a significant impact on XRP since the lawsuit was initiated in December 2020. A significant development occurred on July 13, 2023, when Judge Analisa Torres ruled that XRP is not a security, marking a crucial regulatory decision. However, the SEC appealed the ruling on October 17, challenging certain aspects of the decision. The SEC is expected to submit its opening brief by January 15, 2025, ensuring that the case remains in the public eye.
The Ripple vs. SEC saga continues to unfold, with implications for the future of XRP and the broader cryptocurrency market. Stay tuned for further updates on this ongoing legal battle.