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SEC’s success against Ripple would affect every other cryptocurrency

The case between the Securities and Exchange Commission (SEC) and Ripple has long been drawn up. It has been the subject of a lot of speculation about the possible outcomes and consequences for the crypto market. Attorney John Deaton, founder, and chairman of CryptoLaw, a pro-XRP movement, has warned that the entire crypto community should be worried about what the SEC is trying to achieve with the lawsuit against Ripple.

Attorney John Deaton on Ripple vs. SEC: “You better hope the SEC falls flat”

“Even if you hate the company Ripple and you despise the digital asset XRP, you better be praying that the SEC fails in what it is trying to do,” he said, adding it is going to affect everybody.

secs-success-against-ripple-would-affect-every-other-cryptocurrency

Founder of CryptoLaw Attorney John Deaton

His argument is essentially that the way the SEC framed their case against Ripple is particularly pernicious. It could be placed next to any other existing cryptocurrency and still apply if the commission is successful in the Ripple case.

The SEC currently argues that Ripple’s sale of its XRP amounted to selling an unregistered security. Deaton thinks that the statement presently makes others feel safe as they misconceive it only to apply to XRP, but he feels the argument is a catch-all threat to any crypto-asset, including Bitcoin.

To support his argument, Deaton dismissed the SEC’s revised complaint against Ripple filed in February. He pointed out that all that is needed is to replace XRP with any other cryptocurrency and that the allegations made will apply to them.

A few he points out include the allegations that XRP holders resell the asset to others, that the primary use case is speculation, investors and users of the XRP ledger rely on Ripple to maintain the ledger and bring in profit, as well as the allegation that by Ripple, XRP holders and buyers on the secondary market were all in a joint enterprise.

“If Bitcoin proponents thought they were safe, they should have a rethink as the SEC has in the past held that Bitcoin was sometimes security according to its Former Commissioner Joseph Grundfest,” he stated.

Warnings are timely and not without certain substances. It is even possible that the way many crypto advocates feel as there is almost a consensus in the community that the outcome of the Ripple incident will have far-reaching consequences for the society and the kind of powers the SEC would hold over it.

Meanwhile, in the case, Ripple achieved another victory when judge Netburn ruled that the SEC should respond in detail to Ripple’s interrogation applicable to how the commission reached its conclusion about the status of Bitcoin, Ethereum, and XRP using the Howey Test.

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