While the legal face-off between the United States Securities and Exchange Commission (SEC) and Ripple appears to be taking a significant twist, the Managing Partner of the Deaton Law Firm, John E. Deaton, recently took to Twitter to reveal an intriguing scenario that could have helped prevent the lawsuit.
Per Deaton, if Ripple Labs had made moves like Ethereum Co-founder Joseph Lubin, it would have averted the lawsuit. Notably, Lubin hired Sullivan & Cromwell, right after Clayton’s appointment, to represent Consensys.
Deaton cited that if Ripple executives had made similar appointments right before the lawsuit began to gain momentum, it would have resulted in Clayton exempting himself from voting in support of a regulating action against one of his clients.
In addition, Deaton stated that Ripple’s failure to follow Lubin’s lead saw Ripple forfeit more than $200 million in legal charges. Deaton said, “But they didn’t, and now we are $200 million later, with more to go.”
Several #XRP holders got irritated at me b/c I said we must admit @ethereumJoseph, who quickly hired Sullivan & Cromwell, right after Clayton’s appointment, to represent @Consensys, including hiring several S&C lawyers as staff attorneys, including making a S&C Partner Deputy… https://t.co/7qxzkRjO0c
— John E Deaton (@JohnEDeaton1) August 20, 2023
Deaton Reveals Why Clayton Seemed To Be Protecting Ethereum
Acknowledging that XRP enthusiasts seemed unhappy with him for labeling Lubin smart, the pro-XRP lawyer maintained that Lubin’s decision remains the best.
Deaton stated, “Although I may hold other things against Lubin, no one can blame him for being smart and hiring Sullivan & Cromwell.”
Speaking on why Clayton would never want to support any move that might impact negatively on its client, Deaton revealed that Clayton already swore in a congressional hearing that he would never be a party to any attempt that would jeopardize his client’s expansion.
Following the swearing at the congressional hearing, Clayton kept to his word. He supported Ethereum against Ripple Labs. Clayton’s effort to protect Ethereum’s interest was apparent as the coin was among the few top coins that escaped SEC’s security regulations.
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— TimesTabloid (@TimesTabloid1) July 15, 2023
What Is Next In The SEC vs. Ripple Lawsuit?
Following Judge Torres’s approval of the SEC’s request to file for an interlocutory appeal, a new round of court appearances appears imminent as the SEC seeks to prove a point in its regulatory stance.
While the SEC waits for approval from Judge Torres and the Second Circuit Court of Appeals, it is left to see the extent the next round of court proceedings will affect XRP market value.
Meanwhile, most crypto experts remain bullish on XRP despite the looming court battle that might soon ensue.
At the time of writing, XRP’s price is $0.513169, with a trading volume of $1,031,958,210 and a market cap of $27,073,242,898.
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