Legal Expert John Deaton Debunks This Viral XRP Document

Prominent pro-crypto attorney John Deaton has refuted claims that the U.S. Securities and Exchange Commission (SEC) issued a statement outlining the roles of various cryptocurrencies within the U.S. government.

The widely shared post, originating from the account CryptosRus (@CryptosR_Us), purported that the SEC had officially clarified the potential uses of digital assets such as XRP, ADA, and SOL within the U.S. government.

These claims are easy to believe, as Donald Trump highlighted all three assets as part of the U.S. strategic crypto reserve. This document could be considered another step by the government to legitimize these assets. However, Deaton promptly denied the legitimacy of these claims, clarifying that the document was not from the SEC.

A Falsified SEC Release

Further investigation revealed that the document referenced in the CryptosRus post was not an official SEC statement. Instead, an external individual uploaded it to the SEC’s website, making people believe it carried regulatory authority.

CryptosRus had initially reported that XRP would facilitate state-level financial transactions, ADA would be used for academic credentialing and smart contracts, and SOL would power high-speed blockchain applications for government systems. However, these claims hold no credibility without an official SEC endorsement.

This distinction is significant, as the SEC’s stance on cryptocurrency remains contentious, particularly in light of its ongoing legal battles with industry players with Ripple.

While the recent dismissals of multiple high-profile crypto lawsuits and investigations show a shift in its stance over the past few weeks, the regulator has not shared a public endorsement in this form.

The Impact of Misinformation on Crypto Markets

Misinformation in the cryptocurrency space can have serious consequences, affecting investor sentiment and market stability. False reports about regulatory approvals or classifications can mislead investors and create unnecessary market volatility. Actions like these often stem from a desire to manipulate market prices, as the crypto market reacts quickly to major news events.

Deaton’s quick response highlights the need to verify sources before sharing information. Many commenters called out CryptosRus for spreading misinformation, and this event serves as a reminder that official regulatory positions should always be sourced directly from the SEC rather than unverified social media claims.

Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.

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