In a recent statement on X, formerly known as Twitter, pro-XRP lawyer John E Deaton claimed that the XRP token had lost nearly three years of adoption in the United States. This setback is attributed to the United States Securities and Exchange Commission’s (SEC) lawsuit against Ripple, filed in December 2020. Deaton’s remarks highlight the impact of the SEC’s actions on Ripple and the XRP token.
Coinbase, a major cryptocurrency exchange, recently acquired a minority stake in USD Coin (USDC) issuer Circle. Brad Garlinghouse, CEO of Ripple, made a statement in support of this move, aiming to “unlock additional utilities and grow the USDC ecosystem.” Deaton commented on Ripple and XRP’s potential for widespread adoption in cross-border payments. He noted that exchanges like Coinbase might have shown interest in Ripple without the SEC lawsuit.
Deaton pointed out that before the lawsuit, Coinbase was a significant advocate for XRP, the coin it now delists. He revealed that Coinbase had contacted the SEC to confirm that XRP was prohibited from trading on the exchange before listing it. In a January 2019 meeting with the SEC, Coinbase stated that it had evaluated XRP according to the SEC’s stringent regulatory framework for digital assets. This framework had previously been commended by a senior staff member of the SEC.
In February 2019, Coinbase added support for the XRP token after the SEC did not object to the listing application. Additionally, MoneyGram, Ripple’s major remittance partner, and competitor, disclosed their XRP plans in an SEC filing. The SEC did not raise any issues with MoneyGram, either.
Deaton emphasized that “MoneyGram also determined, just like Coinbase’s lawyers, and just like the SEC enforcement lawyers in June 2018, that XRP was NOT a security.” However, in December 2020, the SEC initiated a lawsuit against Ripple, despite the efforts of Ripple’s partners.
The attorney advocating for XRP argued that the lawsuit against Ripple posed a threat. He stated, “all the evidence uncovered during the last three years proves it true.” Deaton concluded that the litigation had adversely affected XRP’s acceptance, even though Ripple continued to perform exceptionally well outside the U.S.
The SEC’s lawsuit against Ripple has had far-reaching consequences for the XRP token and its adoption in the United States. Despite the efforts of Ripple’s partners and the previous support from exchanges like Coinbase, the lawsuit has hindered XRP’s growth. Deaton’s remarks underscore the challenges Ripple and the XRP token faced in the wake of the SEC’s actions.
As Ripple continues to navigate the legal landscape, the future of XRP remains uncertain. The impact of the lawsuit on XRP’s acceptance and adoption will likely continue to be a topic of discussion within the cryptocurrency community.