Pro-XRP lawyer and founder of CryptoLaw, John Deaton, has recently made a claim that blames the United States Securities and Exchange Commission (SEC) for the slow growth of XRP’s price over the past three years. Deaton believes that XRP’s native token, which is developed by Ripple Labs, could have easily reached $10 per coin with more people joining the network if it weren’t for the SEC’s enforcement action against Ripple in 2020.
Deaton argues that the SEC’s argument that XRP sales constitute investment contracts and should be classified as securities had a negative impact on the entire Ripple ecosystem. He claims that XRP and the broader Ripple ecosystem were performing exceptionally well before the SEC filed the lawsuit against Ripple. The lawsuit caused a significant drop in the price of XRP and led to several exchanges delisting the token due to uncertainties surrounding its legal status.
Deaton expressed his disapproval of the recent strategic partnership between Coinbase and Circle, stating that Coinbase would have been partnering with Ripple instead if it weren’t for the SEC’s indictment. It is important to note that Coinbase was a major promoter of XRP before the lawsuit, and the two entities had a cooperative relationship.
However, despite the setbacks caused by the SEC’s actions, there is hope for XRP’s recovery. On July 13th, Judge Analisa Torres made a ruling that changed the outlook for XRP. The use of XRP for cross-border settlements in various sectors is rapidly increasing. Popular cryptocurrency payment processor BitPay recently highlighted numerous stores and merchants that accept XRP as a form of payment, totaling 28 XRP-friendly merchants.
These merchants span across different industries such as healthcare, transportation, entertainment, and more. Some notable merchants include AMC Theatres, Gamesplanet, Prepaid Gamer Online, Play-Asia.com, Crypto Tourism, Auragentum GmbH, American Precious Metals Exchange (APMEX), O’Gara Coach, and many others.
Additionally, after being pulled down by several exchanges due to regulatory troubles with the SEC, XRP is gradually returning to trading platforms. BIT, a cryptocurrency exchange known for its options trading feature, recently integrated XRP trading on its platform, making XRP the sixth asset available for trading on the BIT protocol. Coinbase, Kraken, and Gemini have publicly announced their plans to relist XRP on their respective platforms, showing support for the XRP Ledger. These relistings and partnerships are expected to contribute to XRP’s recovery and help regain what was lost over the past three years.
In conclusion, John Deaton’s criticism of the SEC is based on his belief that the enforcement action against Ripple hindered the growth and potential of XRP. However, recent developments, such as the increase in XRP adoption by merchants and the relisting of XRP on various exchanges, have the potential to revive XRP’s price and ecosystem. Despite the challenges faced, there is optimism surrounding the future of XRP.