NAIROBI (CoinChapter.com) – Attorney John Deaton has raised fresh concerns about the lawsuit filed by the U.S. Securities and Exchange Commission (SEC) against Ripple Labs, revealing alleged conflicts of interest and hidden alliances that have negatively impacted Ripple and its digital asset, XRP.
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In 2019, Coinbase promoted XRP as a fast and cost-effective tool for global remittances, while MoneyGram adopted XRP for transfers. However, these achievements were short-lived. In December 2020, the SEC filed a lawsuit against Ripple, alleging that XRP was an unregistered security.
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The SEC’s lawsuit resulted in Coinbase delisting XRP and MoneyGram switching to Stellar (XLM). Deaton has since questioned the SEC’s actions, highlighting the perplexing regulatory discrepancy between XRP and XLM, given that both were created by Ripple co-founder Jed McCaleb.
The shifting market dynamics also underscore the broader challenges faced by Ripple in maintaining its dominance in the cross-border payments sector. As competition intensifies, platforms such as Fireblocks, leveraging advanced technologies like AI agents and tokenization, are expanding their presence in the industry. Reports indicate that Fireblocks has processed $6 trillion in transactions, emphasizing the growing competition from emerging blockchain solutions.
Deaton further alleged that individuals supporting the lawsuit later joined Ripple’s competitors, suggesting coordinated efforts to undermine Ripple. “You don’t have to be an XRP fan to recognize these conflicts of interest,” Deaton commented, emphasizing that the SEC’s lawsuit may have wider implications for cryptocurrency regulation.
Ripple achieved a partial victory on July 13, 2023, when Judge Analisa Torres ruled that XRP is not a security in most cases. However, the SEC appealed on October 17, challenging certain aspects of the ruling. The next crucial date is January 15, 2025, when the SEC must file its opening brief for the appeal.
