The high-profile SEC vs. Ripple lawsuit saw new developments this week impacting XRP">XRP cryptocurrency. Attorney John Deaton, a vocal supporter of Ripple’s defense, called out former SEC Chair Jay Clayton on social media for his interpretation of the recent court ruling. Additionally, crypto hedge fund CEO Michael Novogratz conceded the influence of the XRP Army community investors in an interview.
The comments come on the heels of a widespread market correction seeing Bitcoin dip below $17,000 and altcoins like XRP declining nearly 6% to $0.6248. Ripple has scored a tentative victory with the court disagreeing with the SEC on whether XRP transactions post-2020 constituted unregistered securities deals. However, the critical question of the initial offering’s legal status awaits final judgment.
Attorney Deaton slammed Clayton for alleging the court backed the SEC’s view of the initial distribution of XRP tokens as an illegal securities offering. Deaton staunchly rejects this perspective, arguing no comparable legal precedents support this conclusion. He also highlighted the significance of XRP holder affidavits in swaying the recent judgment.
Galaxy Digital’s CEO Novogratz told Real Vision’s Raoul Pal he recognizes the grassroots influence of the XRP Army community. Deaton concurred, crediting their activism with driving Ripple’s partial legal victory so far.
The developments highlight how the high-stakes lawsuit continues impacting XRP’s price action and community. With the cryptocurrency market on shaky ground entering 2023, the outcome could have significant implications for XRP’s future outlook. Both sides appear to be battling for momentum in the court of public opinion as the case proceeds toward resolution.
