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The growing trend by the US Securities and Exchange Commission (SEC) of dismissing crypto-related lawsuits has catalyzed XRP lawyer John Deaton to ask for a swift settlement to the long-drawn XRP lawsuit.
According to a post on social media platform X by Attorney John Deaton, the pro-XRP advocate cited the recent decision by the SEC to drop fraud charges against HEX founder Richard Heart as a basis for urging the Trump-led government to swiftly end the XRP lawsuit.
The SEC Lacked Jurisdiction in the HEX Case
Addressing key SEC officials and the government’s cryptocurrency team, John Deaton criticized the SEC’s ambiguous approach. Still, he highlighted the belief that the SEC vs. XRP lawsuits would soon be dismissed. Deaton wrote:
“As Amici counsel and on behalf of 75K XRP holders, Hester Peirce, David Sacks, Bo Hines, Mark Udeya, when Ripple?”
John Deaton’s sentiments come after the recent dismissal of a lawsuit by the SEC against the HEX founder. The SEC had alleged that Richard Heart had amassed up to $1 billion through unregistered cryptocurrency offerings and $12.1 million through defrauding investors. Nonetheless, the court ruled that the agency had failed to prove its jurisdiction over the defendant’s crypto activity. Passing the ruling on February 28, Judge Carol Bagley Amon stated:
“The alleged misappropriation occurred through digital wallets and crypto asset platforms, none of which were alleged to have any connection with the United States…To the extent that the Complaint shows that Heart misappropriated investor funds through deceptive mixer transactions, those actions occurred entirely outside of the United States.”
Market Reacted Positively To the News
In an unprecedented move, the SEC dismissed several key cases against numerous cryptocurrency market players, including the crypto exchange Gemini. The others are cases involving Coinbase, Robinhood, Uniswap, etc. The crypto market reacted positively to the news of the Hex case dismissal with related crypto tokens like PulseChain (PLS), PulseX (PLSX), and HEX (HEX), which the SEC alleged were securities, surging significantly. In celebrating the win, the HEX founder wrote on X saying:
“HEX has operated flawlessly for over 5 years. Today’s decision favoring a cryptocurrency founder and his projects over the SEC brings welcome relief and opportunity to all cryptocurrencies.”
XRP Lawsuit Dismissal Entirely Achievable
While no one can tell how the SEC and the courts will handle the XRP lawsuit due to its complexity, legal expert Fred Rispoli believes that dismissing the XRP lawsuit is entirely achievable. Rispoli stated that a resolution like the one John Deaton is asking for could be more straightforward than expected. He stated:
“The absence of Paul Atkins did not worry the current 3-member SEC Commission on those large litigation issues. My best guess is that, given the $125M judgment, that is real money that Uyeda and Pierce do not want to be responsible for modifying. It is not a great excuse (it shows cowardice), but it does make some sense. The case is over, either now or in a few months.”
Conclusion
The outcome of the long-drawn XRP lawsuit will undoubtedly determine the future of Ripple and XRP at a time when XRP is preparing to play a significant role in the digital asset world. While the road ahead may remain unclear, the SEC will be pressured to act quickly and decisively.
Frequently Asked Questions (FAQs)
What is the issue in the SEC vs XRP lawsuit?
The SEC accused Ripple of selling XRP in an unregistered security offering.
What could happen if XRP wins a court case?
Ripple will continue operations without worrying about securities regulations, which will be a significant victory for Ripple and the crypto community.
What problem does XRP want to solve?
XRP aims to improve how banks and individuals transact money across borders.
Does XRP want to replace Swift?
Through Ripple’s technology, XRP might not completely replace SWIFT but could complement or compete with it, especially in cross-border payments.
Appendix: Glossary to Key Terms
XRP: The cryptocurrency and native token of the XRP Ledger (XRPL), a blockchain platform designed to facilitate fast, secure, and low-cost international payments,
Ripple: The cryptocurrency (XRP) and the blockchain-based digital payment network, XRP Ledger (XRPL), developed by Ripple Labs
SEC: Securities and Exchange Commission (SEC), the agency that oversees the issuance and sale of securities, including digital assets that meet the definition of securities.
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