SEC vs. Ripple Saga: Ex-SEC Officials' Testimony Could Have Altered XRP's Fate

August 27, 2023 at 01:40 AM GST 2 mins read News

Deaton faults SEC for ignoring Clayton and Hinman’s testimony that could have categorized XRP differently in Ripple’s case.
Deaton highlights Clayton’s vital role, noting his meeting with frustrated Ripple execs discussing XRP’s status after Hinman’s speech.
Earlier clarity from Clayton and Hinman could save costs, aiding crypto adoption.

Prominent pro-XRP lawyer John Deaton highlights the potential impact of testimony by former US Securities and Exchange Commission (SEC) officials Jay Clayton and Bill Hinman. Deaton suggests their views on XRP’s non-security status might have significantly changed the case outcome.

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Of significant note is Clayton’s role in the unfolding saga. Deaton points to a meeting between Clayton, Ripple’s CEO Brad Garlinghouse, and Chief Technology Officer David Schwartz. In the meeting, Garlinghouse conveyed his dissatisfaction by describing Ripple’s situation as being in a state of limbo after Hinman’s speech. However, neither Clayton nor Hinman explicitly confirmed XRP as a security despite this.

Deaton underscores Clayton’s relevance as a fact witness whose testimony could offer crucial state-of-mind evidence. He argues that Clayton’s inclination to pursue personal complaints against executives in non-fraudulent contexts strengthens the case against the SEC’s charges on Garlinghouse.

Hinman definitely gets to testify. Normally, you’d have no chance at being able
to subpoena a former Chairman for a trial. But here, the SEC stupidly chose to bring aiding and abetting charges against the CEO @bgarlinghouse. Ironically, it was Clayton who wanted to sue the…
— John E Deaton (@JohnEDeaton1) August 25, 2023

The attorney emphasizes that obtaining clarity from Clayton and Hinman earlier in the legal tussle could have saved substantial costs and time, potentially fostering a more favorable environment for cryptocurrency adoption. The SEC-Ripple legal battle has led to increased scrutiny of regulatory clarity in the cryptocurrency space, with industry participants closely observing the potential implications of this high-profile case.

As the case unfolds, Deaton’s assertions shed light on the missed opportunities to alter XRP’s fate through expert testimony, prompting discussions about the intricate relationship between regulation, testimony, and the evolution of the cryptocurrency landscape.