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Review of Attorney John Deaton's Opinion on the Ripple and XRP Lawsuit by Mount Equity Group The XRP v. SEC lawsuit in the United States is now receiving global attention despite there having been other contentious instances in the past. The lawsuit's potential long-term effects on the whole Financial Technology industry, in the opinion of Mount Equity Group Review, justify its global attention. The resolution of this specific case has the potential to make or ruin the Fintech sector as a whole.
XRP vs. SEC Overview
Attorney John Deaton claims that the particular situation is exceptional since it is producing a problem with an existing asset years after its distribution. Due to their belief that XRP was not a security asset, Coinbase Global, Inc. (Coinbase) contacted the Securities and Exchange Commission (SEC) regarding it in 2019.
The SEC said nothing at the time to urge Coinbase to think differently. Even though XRP had already been part of the ecosystem for some time at that point and had been listed 18 months prior, the SEC concluded that Ripple should have registered XRP. Given that the SEC typically established this distinction before to publication, this post-release revision increased its contentiousness.
According to the Mount Equity Group Review, Ripple handled the marketing, packaging, and advertising of XRP differently from a security asset. Between 2013 and 2017, Ripple offered and sold unregistered security assets, which would have constituted unregistered securities if the SEC had filed a lawsuit. If the SEC had not abruptly deemed XRP to be a security asset and sued the business for, among other reasons, failing to register after years of trading on public exchanges and platforms, that decision would not have been contentious.
The SEC often brings lawsuits against specific executives, charging them with fraud or dishonesty, misrepresentation, market manipulation, and factual omissions. However, in this instance, they responded too late, drawing responses from experts throughout the Fintech industry.
The Unusual SEC Situation and Its Relationship with XRP Competitors
Bill Hinman received $15 million from his legal firm Simpson Thacher & Bartlett, LLP, a member of the Enterprise Ethereum Alliance, during his tenure at the SEC, according to the Mount Equity Group Review. Investors in Ethereum allegedly supported Hinman's comments.
Coincidentally, One River stakes $1 billion on Ethereum and Bitcoin; Jay Clayton files a lawsuit against XRP as he announces his resignation and joins One River less than ten weeks later. The mystery deepens when you find out that Joe Lubin, the co-founder of Ethereum, and ConsenSys are both represented by Sullivan and Cromwell, Clayton's legal firm. The business helped to arrange a transaction
between ConsenSys and JP Morgan for Quorum, a currency that directly competes with XRP and is issued by JP Morgan.
John Deaton believes that since thousands of XRP holders were injured by this instance, there will eventually be a probe to look into these matters. Whether or if there was criminal activity involved can be formally determined by someone.
Should You Sue the SEC?
It's challenging because anyone wishing to challenge the SEC must give notice, allowing them six months between the notification and the actual litigation. The SEC, on the other hand, enjoys qualified immunity, which precludes lawsuits for errors made by employees while they are operating in the course and scope of their duties. In order to prove beyond a reasonable doubt that the conditions go beyond the normal course of the work, anyone bringing a case against an SEC officer must do so.
Bottomline
The XRP v. SEC lawsuit has undoubtedly prompted a variety of responses from the Fintech community. Some users, it seems from reports, are unable to transfer their XRP into Bitcoin, Ether, or US dollars and have had their funds frozen pending the resolution of this issue. Some individuals contend that the SEC engages in conflict of interest, while others advocate for national regulation of cryptocurrencies like XRP. Regardless of your position on the issue, this case has a lot to teach us.