- Pro-XRP lawyer John Deaton celebrates “best day in crypto” following recent ruling in SEC vs. Ripple case.
- Judge Torres declares XRP is not a security, bringing clarity to its legal status.
- Coinbase and other exchanges quickly relist XRP following the ruling.
Pro-XRP lawyer John Deaton, the founder and host of Crypto Law TV, expressed his excitement and satisfaction in his show, with the recent ruling in the SEC vs. Ripple case. Deaton hailed the decision as a significant milestone for the cryptocurrency industry, asserting that it was arguably the “best day in crypto” in the last three years.
The ruling by Presiding Judge Analisa Torres of the Southern District of New York brings much-needed clarity to the legal status of XRP. In a resounding statement, the judge clarifies that XRP, as a token, is not a security, a position that Deaton strongly supports.
The ruling, according to Deaton, confirmed his belief that early sales of XRP could be considered investment contracts. He further outlined the judge’s categorization of XRP sales, including institutional sales, programmatic sales, other distributions, and individual sales by Ripple executives.
According to the judge, institutional sales, which involve written contracts, can be classified as unregistered securities. However, the judge clarified that programmatic sales on exchanges, including those by Ripple and its executives, were not securities due to their blind nature, with buyers unaware of the sellers’ identities.
Importantly, Judge Torres made it clear that secondary market sales, such as those on exchanges like Coinbase and Kraken, do not qualify as securities. She explained that buyers on these platforms are often unaware of Ripple’s involvement and cannot rely on the company’s efforts.
In his analysis, Deaton noted that the judge’s ruling on the fair notice defense was limited to institutional sales. He clarified that the defense may still apply to other transactions, depending on the circumstances. Ultimately, Deaton expressed his satisfaction with the ruling, commending the judge for her clarity and adherence to the law.
The pro-XRP lawyer concluded the show saying, “I said we’re going to win in the end and today was a great day, and so enjoy it, you deserve it, and victory is ours.”
Overall, the ruling provides significant clarity and a positive development for the crypto industry as a whole. Market participants, including leading exchange Coinbase, have responded swiftly to the ruling by relisting XRP, resulting in the token’s price surge.
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