Attorney John Deaton is still advocating for XRP holders and does not seem to have issues with the SEC going after Ripple.
John Deaton, the legal representative of 72,500 Ripple (XRP) holders in a class action lawsuit against the Securities and Exchange Commission, has once again put the SEC on blast in a recent interview with FOX Business.
Deaton, who has continuously slammed the SEC, said the agency had stretched the Howey test, which the Ripple lawsuit is based on, beyond recognition.
“What I’m saying is that in 76 years when you look at all the sec cases coming from the Howie case there’s never been a case where there’s been absolutely no privity between the purchaser and the buyer,” Deaton was quoted as saying.
Deaton: XRP Is Not A Security
According to Deaton, based on the Howey case cited by the SEC, the sales and service contract, as well as the scheme, was referred to as security and not the underlying asset – “the orange.”
In the case between Ripple and the SEC, Deaton asserted that XRP is not security following the Howey test interpretation. Deaton said he is not against the SEC’s quest to determine whether Ripple breached United States’ securities laws via its 2013 Initial Coin Offering (ICO).
“SEC, if you can prove the case against Ripple, go out, go at it right now, do your job.”
However, he is strongly against the SEC’s claim that XRP is security ten years after the ICO was conducted, after many people have purchased the asset class from various trading platforms, including Coinbase.
“When you say that a person who has never heard of Ripple or has no idea of who Brad Garlinghous is, purchased [XRP] on Coinbase, [and you start] claiming that that token ten years later is an unregistered security with Ripple, now you’ve stretched that Howie case beyond recognition,” Deaton said.
Deaton Charges SEC for Harming Investors
Deaton has been making a case for XRP investors who suffered significant losses following the charges slammed against Ripple by the Securities and Exchange Commission.
Recall that U.S.-based exchanges were forced to de-list XRP after Ripple was charged, as they fear the SEC may come after them. This caused the price of XRP to suffer tremendous losses.
It can also be recalled that after the SEC charged Ripple, Deaton also filed a class action lawsuit against the agency for harming the investors it sought to protect.
Per Deaton, a total of 72,500 XRP investors from 141 countries have joined his class action against the SEC, with more people still willing to participate.
The SEC continued to see Deaton as a thorn in the agency’s flesh and tried to have the attorney thrown out of the lawsuit.
However, the SEC’s motion was denied, as the Judge in charge of the case believes Deaton still has a vital role to play in the summary judgment of the lawsuit.
Deaton Further said that the SEC chairman has time for those who manage his fortune but not for XRP holders.
“Seventy-two thousand five hundred people from over 142 countries worldwide have joined. These are the people that Gary Gensler swore to protect, and instead of talking to us and reaching out to us, he filed a motion. His sec lawyers found a motion to revoke our standing in the court, which means revoke our Amica status, and personally had me thrown off the court, but the judge ignored their silly uh request…Gary Gensler does have time for us, but he met with Vanguard seven times since being sec chair because Vanguard manages 90 percent of his $121 million fortune, so he can meet them but not us.”
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