Crypto lawyer John Deaton has highlighted the role played by approximately 4,000 XRP holders who submitted affidavits in support of Ripple during its legal battle with the US Securities and Exchange Commission, marking the anniversary of the landmark victory.
Deaton, who represented many of the XRP holders in the case, said the community’s involvement was instrumental in securing the favorable outcome. The legal battle, which concluded with a court ruling that XRP is not inherently a security when sold to retail investors on exchanges, was a watershed moment for the cryptocurrency industry.
The litigation spanned several years and was closely watched by the entire crypto industry because it addressed fundamental questions about how securities laws apply to digital assets. The ruling provided legal clarity that helped pave the way for XRP ETF applications and broader institutional adoption.
Deaton criticized the SEC’s approach to the case, describing the agency’s lawyers as “ethically challenged” for their handling of the enforcement action. The case became a flashpoint in the broader debate over the SEC’s regulatory approach to cryptocurrency under former Chair Gary Gensler.
The XRP community rallied around Ripple throughout the litigation, with supporters attending court hearings, submitting legal arguments as amici curiae, and advocating for the token’s classification as a non-security. Deaton said the involvement of individual holders demonstrated the real-world impact that SEC enforcement actions can have on retail investors.
Since the victory, XRP has been listed on major US exchanges that had previously avoided the token due to legal uncertainty. Multiple asset managers have launched spot XRP ETFs, and the token has seen increased institutional interest. The ruling also provided legal cover for other cryptocurrencies facing similar classification questions.
The anniversary serves as a reminder of how the case reshaped the US regulatory landscape for digital assets, though questions about crypto classification continue to arise in new contexts as the industry evolves.
This article was adapted from U.Today. Read the original here.
