John Deaton recently aired his opinion on the SEC versus Ripple case. According to the legal practitioner, the case is critical for crypto. John Deaton went further to criticize the actions of Gray Glenser and the SEC for not being straightforward in their claims.
Deaton predicted that Gary Glenser will sue one or two crypto exchanges this year claiming the exchanges are illegally selling securities. Late in 2020, the US Securities and Exchange Commission sued Ripple. The case against Ripple stated that the company conducted an illegal security offering from one of XRP’s digital assets.
John Deaton has been on the side of Ripple so far. He further believes the SEC is confused in its classification of assets. Notably, the SEC views Bitcoin as a commodity. However, they have refused to treat XRP as a commodity too.
The SEC believes that Bitcoin is a different asset class. With that notion, XRP and other cryptocurrencies are securities. Although the case between Ripple and SEC is yet to be concluded, John Deaton believes crypto fans need to be on the side of Ripple.
How the Final Verdict Will Affect Other Crypto Assets
Should the SEC win the case, XRP will likely be classified as a security, making trading conditions more stringent. Interestingly, this verdict will likely affect the classification of other cryptocurrencies by the SEC and the government.
Additionally, further tension may be triggered in the crypto ecosystem. The SEC and Ripple saga already stirred some FUD among XRP community members in 2020. This caused the price of Ripple to dump massively. Although XRP recovered in the coming months, the token may face another setback if the verdict goes against it.
Amidst the heat in the crypto market, more and more regulations keep coming. Crypto holders will be hoping for some relief before the next clamp down or massive FUD.