Prominent pro-XRP lawyer John E. Deaton recently took to X to outline the challenging situation surrounding Ripple and its ongoing battle with the SEC. He expressed concern over the significant impact of the SEC’s lawsuit on Ripple’s business, stating, I do not believe one can properly estimate the damage to Ripple’s business caused by the sweeping nature of the SEC’s complaint against Ripple.
Deaton brought attention to the historical backdrop, reminding us that when Ripple was launched in 2012, there were no stablecoins, and the cross-border payments sector was ripe for innovation. He noted, You have to remember, in 2012, when Ripple founders created XRP, stablecoins did not exist and the cross-border payments market was wide open and ripe for such disruptive technology. Clearly, it still is today.
Reflecting on Ripple’s early decisions, Deaton revisited the company’s pivotal choice between developing smart contracts or focusing on payments. Interesting to note, during that time, Vitalik Buterin, co-founder of Ethereum, was living with Ripple’s then-CTO, Stefan Thomas. Ultimately, Ripple chose to hone in on cross-border payments, a strategic move considering the potential of this vast market. As Deaton articulated, Considering stablecoins did not exist at the time and, considering just how large the global cross-border payments market was and is, I can see why.
Supporting this point, Deaton referenced the astounding growth of cross-border payment flows, which exceeded $150 trillion in 2022. Furthermore, this volume is expected to reach $250 trillion by 2027, fueled by increased international trade, the boom in global e-commerce, and the enhanced mobility of people and businesses.
Deaton highlighted key moments that encouraged the adoption of XRP, mentioning how Coinbase listed XRP in February 2019 and actively promoted its use, alongside USDC, for international transactions. He also pointed out that in June 2019, MoneyGram began using XRP for its services.
But everything changed dramatically post-December 2021 when the SEC filed a lawsuit against Ripple. Deaton recounted how following the lawsuit, Coinbase delisted XRP, and MoneyGram shifted to using XLM instead. In a critical tone, he questioned, Is anyone out there really going to argue that there was a real difference, UNDER THE LAW, between MoneyGram using XLM over XRP? He further pointed out the irony of this situation, noting that XLM’s founder, Jed McCaleb, is also a co-founder of Ripple and XRP.
The lawyer did not mince words when critiquing the SEC’s approach. He described the SEC’s complaint as the most grossly over-broad Complaint possibly ever filed by the SEC. Deaton raised serious concerns about the integrity of the process, suggesting potential conflicts of interest were at play, revealing that individuals behind the lawsuit later collaborated with Ripple’s competitors. He asserted, Then those same people who pushed for the case against Ripple to be filed, went on to work with or for Ripple’s competitors.
Addressing any doubts about his motivations, Deaton clarified that his financial interests lie mostly in Bitcoin, stating, First, as I disclosed in FEC filings, 80% of my net worth is in BTC. He further illustrated his independence by recalling a past article: Deaton is certainly no Ripple fanboy. He is critical of the fact that Ripple itself has sold about $800 million …
In closing, Deaton expressed, But when you look at the circumstances surrounding how this case was filed, including the massive conflicts of interests, and the fact that people behind the lawsuit went on to help or work for competitors of Ripple, you don’t have to be a fan to call it out.
As of now, XRP is trading at $2.12.
This entire saga sheds light on the convergence of interests within the cryptocurrency sector, underscoring the fierce competition that Ripple faces not just from regulators, but also from other market players.
