Pro-XRP advocate John Deaton has criticized the United States Securities and Exchange Commission (SEC) for its handling of the allegations against Ripple’s CEO Brad Garlinghouse.
Deaton asserts that the SEC’s accusations of aiding and abetting were misguided.
He points to revelations from former SEC officials Bill Hinman and Jay Clayton during the SEC vs. Ripple Labs case, which suggested that XRP should have been considered a non-security.
Despite this, the SEC ignored this information for an extended period.
Digital Asset Investor.XRP, a user on the platform X (previously known as Twitter), expressed the opinion that summoning a16z attorneys Lowell Ness and Chris Dixon, alongside former SEC officials Clayton and Hinman, would have been a more strategic move in the legal battle between the SEC and Ripple.
Deaton concurs that Hinman’s testimony would have been pivotal, but acknowledges the challenges of legally summoning a former SEC chair for trial.
Nonetheless, Deaton argues that the SEC made a mistake in charging Garlinghouse, particularly given Clayton’s history of pursuing complaints against executives in non-fraudulent contexts.
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Deaton emphasizes the significance of Clayton as a witness whose testimony should have been presented in court.
Clayton had interactions with Ripple’s CEO and chief technology officer, during which Garlinghouse remarked that “Ripple is living in purgatory” after the Hinman speech.
However, neither Clayton nor Hinman explicitly designated XRP as a security.
Seeking clarity from these former SEC officials could have potentially saved time and legal expenses, potentially fostering greater adoption of cryptocurrencies.
Despite Judge Analisa Torres ruling that XRP doesn’t qualify as a security in certain cases, the SEC aims to challenge this decision.
In a recent development, a substantial holder of XRP transferred over $20 million worth of tokens to exchanges amid the ongoing breach of its support levels, indicating potential market instability.
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