Former SEC Officials Testify XRP Was Considered a Non-Security
An attorney supporting Ripple's XRP, John Deaton, has criticized the United States Securities and Exchange Commission (SEC) for filing aiding and abetting allegations against Ripple CEO Brad Garlinghouse. According to Deaton, former SEC officials Bill Hinman and Jay Clayton testified during the SEC vs. Ripple Labs case that XRP should be categorized as a non-security. However, the SEC chose to ignore this information for an extended period.
User Suggests Initial Witnesses for the Legal Battle
On social media platform X (formerly Twitter), a user named Digital Asset Investor.XRP expressed their opinion on the SEC vs. Ripple legal battle. They indicated that if it were their choice, they would have called a16z attorneys Lowell Ness and Chris Dixon, along with former SEC officials Clayton and Hinman, as initial witnesses.
Importance of Hinman's Testimony and the Error in Charging Garlinghouse
John Deaton agreed that it was crucial for Hinman to testify in the courtroom. However, he noted that it was not possible to legally summon a former SEC chair for a trial. Despite this, Deaton believes the SEC made a mistake in charging Garlinghouse, especially considering Clayton's inclination to file complaints against executives in a non-fraudulent context. He argues that Clayton's testimony holds significant importance. During their engagement with Ripple's CEO and chief technology officer, Garlinghouse expressed that Ripple was "living in purgatory" following Hinman's speech. However, neither Clayton nor Hinman explicitly stated that XRP was classified as a security.
Missed Opportunity for Clarification
Deaton suggests that if the SEC had sought clarification from Clayton and Hinman earlier, it could have avoided unnecessary legal expenses and saved time. Additionally, it may have had a positive impact on cryptocurrency adoption. Despite Judge Analisa Torres ruling that XRP is not a security in certain instances, the SEC still aims to reverse the decision.
Major XRP Whale Activity Amidst Price Decline
In recent news, a large holder of XRP tokens moved over $20 million worth of the digital currency to exchanges. This activity coincided with the continued decline in XRP's price, which breached its support levels.
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