John Deaton, a supporter of cryptocurrency, has persisted in offering his opinions on discussions pertaining to the security status of the XRP token. The outspoken lawyer responded in his customary style to Twitter user Caesar Korvinus, who said that his decision to invest in XRP was based on his knowledge of the members of Ripple Labs’ board of directors and David Schwartz’s technical know-how.
John Deaton entered the discussion and emphasised that some of the requirements of the Howey Test can be met if Korvinus did, in fact, have direct contact with Ripple and made his purchases from the company.
In the example given by Korvinus, he pointed out, investors who acquire their XRP in this manner can be considered to be partners with Ripple in a shared company, and the work of Schwartz provided them a legitimate expectation of making money with little to no effort.
Weighing SEC claims
Deaton reiterated the general assertions made by the United States Securities and Exchange Commission (SEC) that all sales of XRP, even those obtained from the secondary market, are investment contracts while recognising that there are some individuals in Korvinus’ position.
Deaton reiterated his prior claim that this is untrue and that people who “acquired XRP for non-investment purposes like transferring money on the ledger or using the DEX” are in a different situation.
Deaton is acting as an amicus curiae in the ongoing legal dispute between the Ripple company and the SEC on behalf of around 75,000 XRP investors. The claim is as straightforward as it was before stated; the stakeholders in the sector are asking the court to dismiss the action against Ripple for lack of merit. Judge Analisa Torres will examine some of the major arguments raised by the lawsuit separately, although the case’s summary judgement is anticipated at any time.
