XRP Legal Saga: Unraveling the Blockchain Debate

XRP token prices retraced their gains in the week concluding on Saturday, November 18. Following a tumultuous surge from $0.49 to $0.72 in mid-October, XRP experienced a decline to $0.61 by Sunday morning Tokyo time.

Simultaneously, John Deaton, the well-known attorney in the XRP case, utilized the platform to reiterate to readers that "XRP fundamentally operates as a utility token."

Lawyer Supporting Ripple Lawsuit Highlights Success

The thing that drove me nuts was that a few career securities lawyers would argue XRP is a security. I would always counter with “anything can be marketed, packaged and sold as a security, including XRP, but it doesn’t make the asset itself one.”

To me the SEC’s complaint… https://t.co/koPupsFVLh

— John E Deaton (@JohnEDeaton1) November 17, 2023

In a comprehensive post addressing recent developments in the SEC's lawsuit, Deaton reiterated the "straightforward reasoning" underlying Ripple Labs' case, instilling confidence in him that the blockchain company will emerge victorious:

"'XRP fundamentally operates as a utility token.' This was the uncomplicated reasoning that led me to believe Judge Torres would unequivocally establish that XRP itself is not a security. She adhered to the legal framework."

Furthermore, Deaton underscored the importance of upholding the rule of law in the Ripple lawsuit, irrespective of personal opinions about the defendants. He remarked, "It was astonishing that other, more seasoned securities lawyers failed to see it the way I did. I believe it was because they were indifferent to the Government's target."

"Taking such a stance is perilous. We cannot ignore government overreach simply because we harbor unfavorable sentiments toward the defendant," Deaton added.

Potential Trajectory of the SEC's Lawsuit

Not everyone concurs that the SEC will concede or lose the Ripple Lawsuit against the San Francisco-based tech company. Senior correspondent Charles Gasparino from Fox Business asserted on Thursday that Ripple's prior triumphs are transitory, and XRP holders have only "'won' temporarily."

The Ripple lawsuit is slated for a full trial in the U.S. Circuit Court Southern District of New York in April. Notably for blockchain enthusiasts, Bitcoin will undergo a halving of its new supply of BTC in the same month, marking the first occurrence in four years.

If the SEC's legal action against Ripple Labs remains unresolved by the trial in the SDNY court, it is destined for consideration on the Supreme Court's agenda. Both the SEC and Ripple CEO Brad Garlinghouse appear willing to escalate the dispute to the nation's highest court.

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