Deaton Claims Victory in XRP-SEC Lawsuit as SEC Acknowledges XRP as “Software Code”

The post Deaton Claims Victory in XRP-SEC Lawsuit as SEC Acknowledges XRP as “Software Code” appeared first on Coinpedia Fintech News

The well-known cryptocurrency attorney and XRP supporter John Deaton has boasted about their success in getting the United States Securities and Exchange Commission to acknowledge that the Ripple-issued asset is a software code.

According to Deaton, XRP, much like gold, Bitcoin, and other cryptocurrencies, may be bought and sold like security. It is immaterial to what XRP is now, he said, whether or whether the founders of Ripple broke securities laws at some time in the company’s history.

What Led To It

He made this information public after a person on Twitter endorsed a claim made by self-proclaimed Bitcoin founder Craig Wright that XRP is a hoax and security. Deaton said that he had replied to Wright’s accusation that XRP was a fraud with the expression “the pot calling the kettle black.”

On the other hand, Wright found the remark to be offensive, and as a result, she promptly banned Deaton on Twitter. During the course of the event, a person on Twitter who goes by the moniker DirtyDingo Crypto claimed that not only is XRP a hoax but that the co-founder of Ripple, Chris Larsen, confirmed in 2012 that the coin was security.

Since the beginning of this decade, the United States Securities and Exchange Commission (SEC) has been investigating Ripple and its two top executives for their involvement in the trading of XRP, which the regulator considers to be security.

Ripple denies the accusation and argues that the token should not be regarded as security since it is utilized in the company’s operations to enable international financial transactions between banks and other financial institutions.

In their last batch of filings requesting a summary judgment on the matter, both Ripple and the SEC filed them in December 2022, claiming each other of going beyond the scope of the law in their arguments.

Ripple’s CEO, Brad Garlinghouse, has expressed his optimism that a settlement to the company’s dispute with the SEC may be found within the first half of 2023.