The Impact of the SEC Lawsuit
The United States Securities and Exchange Commission (SEC) lawsuit filed against Ripple in December 2020 has had a significant impact on the adoption of the XRP token in the United States, according to pro-XRP lawyer John E Deaton. In a recent post on social media platform X (formerly Twitter), Deaton expressed his belief that if not for the lawsuit, Ripple and XRP would have seen even greater adoption, with companies like Coinbase showing similar interest.
The Role of Coinbase
Deaton highlighted the role Coinbase played in promoting XRP prior to the lawsuit. He reminded the community that Coinbase was one of the major promoters of the token before it was forced to delist it. Deaton emphasized that Coinbase had done its due diligence and even reached out to the SEC to confirm the regulatory status of XRP before listing it. In a meeting with the SEC in January 2019, Coinbase explained its evaluation of XRP based on the regulatory framework for digital assets, which had been complimented publicly by a senior SEC staff member.
MoneyGram's Use of XRP
In addition to Coinbase, Deaton also mentioned MoneyGram, a payment processor giant and key Ripple remittance partner. MoneyGram had filed a form with the SEC, disclosing its plan to use XRP, and faced no objection from the regulatory body. Deaton pointed out that this indicates MoneyGram's lawyers, like Coinbase's lawyers and the SEC enforcement lawyers in June 2018, determined that XRP was not a security.
The Lawsuit as a Weapon
Deaton argued that the lawsuit against Ripple was used as a weapon and claimed that the evidence uncovered over the past three years supports this assertion. Despite Ripple's success outside of the US, he concluded that the lawsuit had a detrimental effect on XRP's adoption. It is worth noting that on July 13, a New York District Court judge ruled partially in favor of Ripple Labs, stating that XRP sales on digital asset exchanges are not considered securities.
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