CryptoLaw framework and blockchain John Deaton predict that the SEC will reject the summary of the judgment whether Ripple CEO, Brad Garlinghouse and co-founder Chris Larsen were negligent in not recognizing XRP as a security.
The SEC will deny summary judgment or @bgarlinghouse and @chrislarsensf was negligent in not knowing #XRP a protection. The fact that BG 3X met with the SEC and they never once said “XRP is a security” is proof that a reasonable jury can prove that it is not nonsense. https://t.co/X6cQIYWJsc
— John E Deaton (@JohnEDeaton1) January 18, 2023
His belief stems from one important factor: The CEO of Ripple Brad Garlinghouse met three times with the SEC, and not once did they say “XRP is a security.”
“The fact that BG (Brad Garlinghouse) met 3X with the SEC and not once did they say ‘XRP is a security’ is evidence that a reasonable jury could prove that it is not ridiculous,” Deaton said.
In December 2020, the SEC filed a lawsuit against Ripple and two of its executives: CEO Bradley Garlinghouse and founder Christian Larsen.
The SEC said that Ripple’s management ignored the facts, which “allegedly made XRP an unregistered securities sale.”
As reported by UI todayDeaton published facts to support the opinion of the Ripple management that it is not competitive, as the SEC said.
In a long series of tweets, he gave some facts, including: in 2013, the founder of Ripple Chris Larsen gave a statement to the SEC, CFTC and other agencies about the plans a Ripple disrupts the payment system of the world by using XRP. And, in 2014 and 2015, the USGAO classified XRP as a “special currency,” along with FinCEN and the DOJ.
He said that if someone is given summary judgment in the case, it will be the Ripple administration because there is no reasonable judge to make a decision that they are negligent.
However, he believes that the lawsuit against the Ripple management may be made in court. In March 2022, the individual defendants’ motion to dismiss the lawsuit against them was denied.