Attorney John Deaton has raised new concerns over the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple Labs, revealing what he claims are conflicts of interest and hidden alliances that have harmed Ripple and its digital asset, XRP.
According to Deaton, the SEC’s actions have not only impacted Ripple but also the broader cryptocurrency industry, with legal battles over XRP’s status as a security having far-reaching implications for the regulation of digital assets.
In a recent Substack post, Deaton highlighted several instances that he claims demonstrate conflicts of interest andسرائیت.
For example, he pointed to the involvement of former SEC officials — such as Valerie Szczepanik and Robert Steigerwald — who played a role in the SEC’s investigation of XRP and later joined Ripple’s competitors, Ava Labs and Stellar Development Foundation, respectively.
Deaton also noted the close ties between the SEC and banking institutions, suggesting that the former’s reluctance to classify XRP as a non-security may be linked to pressure from banks that stand to lose from competition in the cross-border payments market.
Furthermore, he raised questions about the SEC’s decision to approve a Grayscale XRP trust despite the agency’s ongoing lawsuit against Ripple over the same asset.
“The SEC’s conduct in the XRP litigation has had a devastating effect on XRP holders, Ripple, and the entire crypto community. But it’s also had a broader, systemic impact on the legal framework governing crypto,” Deaton wrote.
“The SEC’s actions have created massive uncertainty, making it nearly impossible for crypto projects and businesses to navigate the regulatory landscape with any degree of confidence,” he added.
Deaton’s concerns come as the SEC continues to appeal a judge’s ruling that XRP is not a security in most cases. The next critical date in the case is Jan. 15, 2025, when the SEC must file its opening brief for the appeal.
