In a remarkable turn of events, the XRP Army, a fervent group of supporters for the XRP cryptocurrency, has been credited with significantly influencing the outcome of the legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC). Lawyer John Deaton, a vocal advocate for XRP and its community, highlighted the impact of thousands of affidavits submitted by members of the XRP Army, which he argues played a critical role in the judge’s ruling.
The legal dispute has spanned nearly five years, stemming from the SEC’s 2020 lawsuit against Ripple and two executives. The SEC accused them of selling unregistered securities through XRP, igniting a complex and contentious legal saga. In October 2023, federal district judge Analisa Torres delivered a split ruling in which she asserted that XRP sales to institutional investors did indeed violate securities laws, while sales executed on public exchanges did not. This ruling was viewed as a substantial win for Ripple, albeit with liability remaining for institutional sales.
Deaton emphasized the undeniable contribution of the XRP Army in shaping this outcome. He stated, “No credible person can argue that the XRP Army didn’t make a difference in the Ripple case. If they do, they’re either ignorant to the facts and truth or intentionally lying.” He pointed out that over 2,000 exhibits were presented in the case, reinforcing the notion that community involvement had a tangible impact.
The XRP Army mobilized prior to the ruling, uniting players within the cryptocurrency field who collectively submitted affidavits to bolster Ripple’s stance. Deaton noted that the judge cited these affidavits in her decision, suggesting that without them, there could have been legitimate debate over the community’s impact. One of the XRP Army members, James Rule, shared that he submitted multiple affidavits expressing how he relied on XRP for daily transactions, emphasizing the widespread community effort.
Moreover, the XRP Army’s activities weren’t confined solely to legal documentation; members conveyed personal testimonies, some stating that they used XRP without a clear understanding of Ripple as the entity behind it. This point was underlined by another Army member, CryptoinsightUK, who articulated that genuine transactional use disregards the necessity of knowing the issuing entity.
Although the SEC initially pursued appeals against the 2023 ruling, both parties ultimately dropped their respective appeals last month, concluding a lengthy and arduous legal battle. This decision was met with celebration among XRP supporters, who expressed a sense of solidarity and resolve, asserting that they emerged from the conflict “bigger and stronger together.” The sentiment was reflected by MackAttackXRP, another member of the community, who stated, “We’ve known for years that we were on the right side of history.”
This case has not only shaped the future of Ripple and XRP but also set pivotal precedents for the wider cryptocurrency industry, highlighting the power of community action in navigating complex legal landscapes.
