John Deaton Challenges SEC’s Global Reach on XRP Sales

The tussle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs just got more interesting, thanks to pro-XRP advocate John Deaton. Founder of Crypto Law US and a prominent voice in cryptocurrency, Deaton has taken a stand against the SEC’s attempts to stretch its authority beyond U.S. borders, sparking a lively debate about the global rules for XRP sales.

Deaton Takes on the SEC…Again!

John Deaton has challenged the SEC’s bold attempts to seek disgorgement for Ripple’s XRP sales outside the United States. Drawing on the precedent set by the U.S. Supreme Court’s Morrison decision, Deaton argues that the SEC’s jurisdiction does not extend to Ripple’s international transactions, especially in jurisdictions where local regulators declare XRP a non-security.

What Other Countries Are Saying

As the SEC’s lawsuit hinges on the classification of XRP as a security, Deaton’s focus on international regulators’ stance is crucial. In the UK, the Financial Conduct Authority (FCA) has classified XRP as an exchange/utility token, and the Japanese Financial Services Agency (FSA) also does not consider XRP a security. This international regulatory landscape contrasts sharply with the SEC’s current position and supports Deaton’s argument against the SEC’s overreach.

Deaton’s careful look suggests a big chunk of Ripple’s sales up for disgorgement could be left out just because of where they happened. He also zooms in on sales to accredited investors and looks at the way transactions happen, especially with On-Demand Liquidity (ODL) services. Here, the quick turnover of XRP becomes a big point against any significant harm.

The Power of the People

Deaton highlights the unique involvement of the XRP community, noting that over 75,000 XRP holders have petitioned the court, saying it’s the SEC, not Ripple, causing them harm.

Positive Outlook for the Future

As the SEC pushes for disgorgement on XRP sales, Deaton’s comments inject optimism into Ripple’s legal chances. According to Deaton, the court’s main goal isn’t to punish Ripple when fraud isn’t proven, but to deal with proven harm to investors. This seems less likely given the growing evidence and the supportive international rules.

Also Read: XRP Price November Surge: A Deja Vu from 2017? Will History Repeat Itself in 2023?

The ongoing Ripple legal drama is peeling back layers on how national rules, global laws, and cryptocurrency rules interact. During all of this, insights from experts like John Deaton are key to understanding the bigger picture for the global cryptocurrency market. Ripple’s legal team, backed by international support and community backing, waits for the court’s decision with hope.