The recent ruling in favor of Ripple in the case against the US Securities and Exchange Commission (SEC) has sparked criticism from securities lawyers. However, Pro-XRP lawyer John Deaton has responded to these critics, stating that the judge simply applied the Howey Test, a legal standard used to determine whether an asset qualifies as a security.
Deaton has also addressed speculation about his involvement in the lawsuit, explaining that his actions are driven by principles rather than personal gain. He has emphasized that if he had owned Bitcoin in 2013 when the SEC declared it a security, or if the Commission had made the same allegation against Ethereum, he would have taken legal action against the SEC. While he does have investments in Bitcoin, Ethereum, and XRP, his holdings in Bitcoin and Ethereum are significantly larger than his stake in XRP. He has also clarified that his position against the SEC is based on advocating for fair and transparent regulations in the cryptocurrency market, not solely as an XRP investor.
In response to criticisms of the judge’s ruling, Deaton defended the judge, arguing that the SEC failed to establish a common enterprise factor for XRP. Ripple CEO Brad Garlinghouse also supported the judge’s decision, stating that it is unfair to blame the judge for simply applying the law. According to Garlinghouse, applying the law is necessary to protect retailers and provide clear rules for the cryptocurrency industry.
The outcome of the Ripple vs SEC case had significant implications for the crypto market, as a loss for Ripple could have had negative consequences. During the course of the case, the SEC filed a lawsuit against Binance, a major cryptocurrency exchange, for offering unregistered securities. The SEC listed assets such as ADA and SOL as securities in this lawsuit. Given the importance of the ruling, investors’ interest in XRP has surged since the victory, reaching a new All-Time High since November 2021.
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Open interest in XRP on various exchanges has also skyrocketed following the ruling. Binance currently has the highest open interest in XRP, with $357 million. On other exchanges such as Bitget and OKX, the open interest in XRP is around $198 million and $71 million, respectively. Bitmex has also seen open interest in XRP reach $7 million. The open interest metric provides insight into the flow of money and the strength of a given price trend.
At the time of writing, XRP is trading at $0.696309, experiencing a 5 percent decline in the last seven days. However, it has seen a positive 30-day run with a 41.56 percent surge.
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