The post XRP’s Growth Hindered by SEC Lawsuit: Attorney Deaton Laments Missed Years appeared first on Coinpedia Fintech News
Ripple and its digital currency XRP have faced a significant roadblock in their journey, and it’s linked to regulatory battles. Notably, cryptocurrency litigation expert John Deaton sheds light on how the U.S. Securities and Exchange Commission (SEC) has played a role in hindering XRP’s potential growth.
John Deaton’s analysis that Legal Battles Pose 3 Years Setbacks in XRP’s Growth
John Deaton, a pro-XRP attorney, took to Twitter to express concerns with XRP’s progress, which has fallen behind in comparison with other altcoins since Ripple vs Securities and Exchange Commission (SEC) lawsuit came into effect.
In his tweet, he stated that “ You could NEVER underestimate the damage the SEC’s lawsuit has caused – NOT ONLY AGAINST RIPPLE – BUT #XRP. THREE YEARS OF ADOPTION – that’s what it’s caused”.
In response to Coinbase’s recent investment in Circle, a key USDC stablecoin on its platform, this statement notes that Coinbase had proactively sought advice from SEC attorneys before including XRP.
Deaton suggests that if the SEC lawsuit hadn’t happened, Coinbase may have chosen Ripple instead of Circle. It’s worth noting that Coinbase listed XRP and Circle’s USDC around the same time, with respective transaction speeds of 3-5 seconds and 10-12 seconds.
Coinbase’s Diligence and XRP’s Regulatory Path: A Close Look
The journey of relisting XRP on Coinbase proved to be more than a simple transaction. It entailed a thorough process of due diligence, meticulously executed to ensure strict compliance with regulatory norms.
Coinbase took proactive measures by engaging with the U.S. Securities and Exchange Commission (SEC) to navigate the regulatory landscape. This engagement played a crucial role in clarifying that XRP is recognized as a digital asset rather than security.
The SEC and Coinbase engaged in a meeting to discuss the classification of XRP as a digital asset. Interestingly, the SEC did not express objections to Coinbase’s XRP plans during their dialogue.
In a statement, John Deaton acknowledged the future prospects of Coinbase’s regulatory harmony as evident from its preparations for an upcoming IPO.
Coinbase’s Dynamic Role, Catalyzing XRP and USDC Revolution Amid Legal Twists
In the past few months, Deaton observed that Coinbase actively promoted both XRP and another stablecoin, USDC. The exchange regarded these digital assets as groundbreaking solutions, especially during a time when traditional bank transfers were often time-consuming.
During the active promotion efforts, a surprising development arose, the legal action taken by former SEC chairman Jay Clayton against Ripple shook the cryptocurrency industry, as it claimed that XRP was being traded unlawfully as securities.
Surprisingly, despite previous indications from the SEC suggesting otherwise, a lawsuit arose regarding the classification of XRP as a security.
Even though the SEC had previously approved MoneyGram International Inc’s integration of XRP into its cross-border payments system 18 months ago, this recent legal action unfolded.
Even though the SEC had previously approved MoneyGram International Inc’s integration of XRP into its cross-border payments system 18 months ago, this recent legal action unfolded.
Deaton emphasizes the detrimental impact of legal challenges on the potential growth of XRP. These challenges have resulted in missed opportunities and prevented the realization of significant advantages.