In a significant development for the cryptocurrency community, crypto lawyer John Deaton has highlighted the pivotal role that the XRP Army played in Ripple’s successful legal defense against the Securities and Exchange Commission (SEC). The four-year legal battle reached its resolution in August, with both parties agreeing to drop their appeals, marking an important milestone in Ripple’s ongoing struggle with regulatory scrutiny.
Deaton, who represents XRP holders, pointed to Judge Analisa Torres’s ruling in July 2023, which referenced affidavits from XRP holders and Deaton’s amicus brief. This ruling determined that XRP tokens sold on exchanges were not classified as securities, a critical point in the case. Deaton asserted that anyone dismissing the community’s influence on the outcome is either unaware of the facts or deliberately misleading.
The SEC first filed its lawsuit against Ripple in December 2020, accusing the company of illegally selling XRP as unregistered securities. Judge Torres’s mixed ruling concluded that while institutional token sales could be considered securities, those sold on exchanges were not. This decision resulted in a notable spike in XRP’s price, soaring from $0.47 to $0.81—an increase of 72%.
Ripple’s Deputy General Counsel, Deborah McCrimmon, echoed Deaton’s sentiments, affirming that the contributions of the XRP Army were invaluable throughout the proceedings. The community amassed thousands of dollars’ worth of legal research voluntarily, uncovering pivotal SEC speeches and documents that bolstered Ripple’s defense strategy centered around fair notice.
During the litigation, over 75,000 XRP holders submitted affidavits in support of Ripple’s stance. These submissions provided crucial evidence regarding the manner in which individuals bought and utilized XRP tokens, effectively countering the SEC’s assertions regarding investor expectations. Furthermore, the community engaged in lobbying efforts and social media campaigns aimed at applying pressure on regulators.
According to McCrimmon, the community’s efforts demonstrated that the case had widespread implications, impacting not just Ripple as a company but a broad array of stakeholders. The XRP Army played a significant role in uncovering historical evidence that displayed the SEC’s inconsistent messaging about digital assets, a task that would have been costly if carried out by legal professionals.
The court case itself generated over 2,000 exhibits from both Ripple and the SEC, though Judge Torres referenced a limited number of those in her final ruling. Among the salient citations were the affidavits of XRP holders and Deaton’s amicus brief, underscoring the community’s considerable influence on the legal proceedings.
As for XRP’s market performance, the token is currently trading at $2.85, down about 4% over the last 24 hours. Following a new all-time high of $3.65 in July, XRP has seen mixed trading results, with initial price surges followed by corrections as market enthusiasm subsided.
This development reinforces the notion that community engagement can have a substantial impact on legal outcomes in the rapidly evolving landscape of cryptocurrency regulation.
