Correction: If Ripple wins, only XRP will be safe. Not even Bitcoin

Rick Steves

John Deaton stands corrected amid the recent and bizarre turn of events.

A recent turn of events saw the Securities and Exchange Commission denying it ever made an official statement on the nature of Ether or Bitcoin.

Ripple and its co-defendants have gathered several statements from SEC officials in text, audio, and video that would suggest otherwise, but the agency insists those were only personal opinions.

BTC safe? John Deaton stands corrected

XRP Holders attorney John Deaton has recently commented on the necessary conditions for a win-win situation for both Ripple and the SEC.

In particular, the importance of a couple of rulings and a bull market to transform XRP into the only altcoin with regulatory clarity in the United States, while allowing the SEC to score a huge sum on settlement.

According to John Deaton’s theory, if Ripple wins the SEC lawsuit, only Bitcoin and XRP will be safe from the securities regulator. His statement can be found here.

Since those words, the SEC said it has not officially declared BTC and ETH as compliant cryptos, although there are many public videos that show top SEC figures, including Bill Hinman and ex-SEC Chair Jay Clayton explicitly commenting on the two coins on behalf of the agency, not to mention the famous Hinman’s 2018 speech.

This seems to be quite a bizarre turn of events that, if holding true, John Deaton will stand corrected in regard to his prediction: Bitcoin is no longer safe from a potential SEC enforcement action.

The SEC’s unstable positions may weigh on Judge Sarah Netburn’s decision to rule in favor of Ripple’s motion to compel the SEC to hand over the documents about their thoughts on BTC, ETH, and XRP.

Such ruling would be critical for a potential win on the fair notice defense and could lead to John Deaton’s prediction, except for the Bitcoin part.

SEC infighting continues

This change of heart only adds to the confusion over the regulatory framework for digital assets, although SEC Chair Gary Gensler says there is clarity.

Yesterday, SEC Commissioners Hester Peirce and Elad Roisman have criticized the SEC’s Chair agenda for coming up short on furthering investor protection by failing to provide more clarity on digital assets.

“First, the Agenda makes no mention of any regulation with respect to digital assets. In the last several years, this sector has grown in size, complexity, diversity, and investor interest. Rather than taking on the difficult task of formulating rules to allow investors and regulated entities to interact with digital assets, including digital asset securities, the Agenda—through its silence on crypto—signals that the market can expect continued questions around the application of our securities laws to this area of increasing investor interest. Such silence emboldens fraudsters and hinders conscientious participants who want to comply with the law”.

Read this next


US arrests Yune Wang for role in 911 S5 botnet scam

A global malware network, linked to the theft of $5.9 billion in Covid relief funds and crypto crimes, has been dismantled, the Department of Justice (DOJ) announced today. The network was also involved in child exploitation, bomb threats, and various cyberattacks.

Digital Assets

US Treasury official clarifies stance on crypto mixing services

The Financial Crimes Enforcement Network (FinCEN) proposed a rule last year to classify convertible crypto mixing as a “class of transactions” with primary money laundering concerns.


Robinhood sweetens US crypto offering with trading API

Robinhood has launched a cryptocurrency trading application programming interface (API) for users in the United States. The new API caters to seasoned crypto traders by enabling automated trading strategies, allowing users to react quickly to market movements and trends.


After Retik Finance’s 67% Drop, Investors Turn to BlockDAG’s 30,000x ROI Potential to Recover Their Losses

Explore how BlockDAG’s $37M presale is drawing investors while Retik Finance collapses to $0.403.

Digital Assets

Terraform Labs and co-founder Do Kwon reach settlement with SEC

Terraform Labs and its co-founder Do Kwon have reached a “settlement in principle” with the U.S. Securities and Exchange Commission (SEC) regarding a fraud case, according to a court filing on Thursday.

Market News, Tech and Fundamental, Technical Analysis

FTSE 100 Index Technical Analysis Report 30 May, 2024

FTSE 100 Index can be expected to rise further toward the next resistance level 8325.00, which reversed the price earlier this month.


Sui and Atoma Bring the Power of AI to dApp Builders

The integration of Atoma adds new capabilities to Sui’s flourishing developer ecosystem with unique AI-querying capabilities.

Digital Assets

Talos incorporates DeFi with Skolem acquisition

Talos has acquired Skolem to enable clients to incorporate DeFi into their workflows in a move that sets a new standard for the digital asset OEMS and PMS.