Pro-XRP attorney John Deaton argues that the United States Securities and Exchange Commission (SEC) made a mistake by including aiding and abetting allegations against Ripple’s CEO Brad Garlinghouse. Deaton points out that former SEC officials Bill Hinman and Jay Clayton’s testimony in the SEC vs. Ripple Labs case would have classified XRP as a non-security from the beginning. However, the SEC ignored this information for a long period of time.
User Digital Asset Investor.XRP on X (formerly Twitter) suggests that a16z attorneys Lowell Ness and Chris Dixon, along with former SEC officials Clayton and Hinman, should have been summoned as initial witnesses in the SEC vs. Ripple legal battle. Deaton agrees that Hinman’s testimony is crucial, but it’s not legally possible to summon a former SEC chair for a trial. However, Deaton argues that the SEC’s decision to charge Garlinghouse is flawed, especially considering Clayton’s willingness to file complaints against executives on a personal basis in a non-fraudulent context.
According to Deaton, Clayton holds significant importance as a witness who should provide testimony in the courtroom. Garlinghouse had previously expressed that Ripple was “living in purgatory” after Hinman’s speech, in which XRP’s categorization as a security was not explicitly stated by either Clayton or Hinman.
Obtaining clarification from Clayton and Hinman could have potentially saved legal expenses and time, and could have even boosted cryptocurrency adoption. Despite Judge Analisa Torres ruling that XRP is not a security in certain instances, the SEC is still seeking to reverse this decision.
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In recent news, a major XRP whale moved over $20 million worth of tokens to exchanges as the price of XRP continued to drop below its support levels.
The involvement of high-profile individuals and the SEC’s handling of the case has drawn attention to the regulatory environment surrounding cryptocurrencies. Understanding how regulators classify and regulate digital assets is essential for the growth and adoption of cryptocurrencies. In this regard, SEC Chair Gary Gensler plays a crucial role in shaping future regulations.
Overall, the SEC’s decision to charge Ripple’s CEO Brad Garlinghouse and their handling of the case has raised questions about the agency’s motives and decision-making process. By disregarding testimony from former SEC officials and not seeking clarification, the SEC’s actions have prolonged the legal battle and hindered cryptocurrency adoption. It remains to be seen how this case will unfold and what impact it will have on the future of XRP and other cryptocurrencies.
