XRP Army's Impact on Ripple SEC Case, Deaton Says
XRP Army Played Key Role in Ripple SEC Lawsuit
The SEC's case against Ripple saw a turning point in July 2023 when Judge Analisa Torres ruled that XRP, by itself, is not a security. Attorney John Deaton, representing XRP holders via an amicus brief, now asserts that the XRP Army's collective efforts were decisive.
Community Impact Highlighted by John Deaton
In a detailed post on X, Deaton noted that Judge Torres cited only a few dozen exhibits from over 2,000 filed, including XRP Holder Affidavits, his amicus brief, and oral arguments from the LBRY case. He emphasized, "One person can inspire many, and together, they can make a difference."
Deaton stressed that Judge Torres’ reliance on these community-backed affidavits and his amicus contribution validated the importance of community-driven advocacy.
"Had she not cited those things, people could legitimately debate whether our efforts made a real difference. But the proof is in the decision itself," Deaton explained, reinforcing that the XRP Army’s activism materially shaped the legal reasoning.
His remarks underscore the potential for organized communities to influence landmark crypto cases, pushing back against regulatory overreach.
The Ripple SEC lawsuit is now concluded, with the U.S. Appeals Court approving the dismissal of appeals from both parties last month.
Ripple's Legal Journey and SEC Battle
Deborah McCrimmon, Ripple’s VP and Deputy General Counsel, discussed the company’s mission and the SEC case challenges in a recent podcast. She highlighted Ripple’s goal of building the “internet of value,” aiming for low-cost, instant cross-border payments via the XRP Ledger.
The SEC’s lawsuit, initiated in December 2020, alleged that Ripple's XRP sales were unregistered securities. Ripple contested that XRP itself was not a security—a stance validated by Judge Torres’ July 2023 ruling.
McCrimmon noted the case attracted significant attention, especially from the XRP Army, which uncovered SEC speeches and public records supporting Ripple’s “fair notice” defense.
Market Momentum for XRP Following Courtroom Wins
Although Ripple has settled with the SEC regarding penalties, the broader implications are substantial. Analysts suggest the ruling provided clarity for Ripple and set a precedent for digital assets facing regulatory scrutiny.
The XRP Army’s activism is remembered as a cornerstone, demonstrating how grassroots legal involvement can shift the balance in high-stakes financial regulation. Deaton believes their contributions ensured Judge Torres distinguished between XRP tokens and investment contracts, a nuance impacting future crypto jurisprudence.
According to Deaton, the consistent advocacy and pressure from retail investors helped sustain Ripple, boosting confidence in XRP's potential to outperform Ethereum.
Ripple continues to expand XRP’s real-world applications, from powering international payments to enhancing financial inclusion. McCrimmon reaffirmed the mission: “to make global money transfers as seamless as sending an email,” with XRP at the core.