XRP News: Legal Expert Calls SEC’s Argument against XRP’s Utility ‘Baseless’

Published by
XRP News: Legal Expert Calls SEC’s Argument against XRP’s Utility ‘Baseless’

John E. Deaton, a legal expert and popular in the crypto community as the Founder and Host of CryptoLaw, has recently joined the long line of experts discarding SEC’s ‘Utility’ argument about XRP coin in the lawsuit against Ripple. 

It began last year during late December when former Securities and Exchange Commission (SEC) Chairman Jay Clayton filed a lawsuit against Ripple and two of its executives. The lawsuit alleged Ripple had been selling unregistered securities since 2013 in the form of  XRP. SEC’s argument against XRP coin being security was two-fold. First being XRP’s lack of Utility which would put it in the securities category instead of a currency, and the second argument said that all XRP holders have taken part in a “common enterprise” with Ripple.

Both claims backing XRP coin’s  lack of utility were turned down by the court. Furthermore, SEC’s utility argument has been derided for “lacking utility itself” by experts.  

“The open-source nature of XRP allows users throughout the world to use the token to pay for goods and services without any connection to or reliance on Ripple. According to Cryptwerk, over 1,300 companies currently accept XRP for payment across industries from business services to tourism and travel… I have been contacted by over 19,000 XRP coin holders from around the world, many of whom receive paychecks in XRP coin and use XRP-powered debit cards to shop for groceries and pay for gas. These people are not in “common enterprise” with Ripple, despite the SEC’s claims.”, wrote John E. Deaton in his blog about SEC’s lawsuit against Ripple.

Advertisement

Is it End for SECs Lawsuit Against XRP Coin?

U.S Magistrate Judge Sarah Netburn ordered the SEC in April, to put together documents, including certain internal and external communications; accompanied by a log of privileged documents. However, the SEC has shown resistance with no news on any documents, regardless of the extensive timeline. Along with that, SEC has refused submission of other determining documents like communications from the Office of Investor Education and Advocacy or its financial technology email inbox, FinTech@SEC.gov.

Ripple has requested the court for the third hearing instead of a pending verdict due to a delayed hearing and lack of cooperation from the SEC. Securities and Exchange Commission has built a franchise of unethical, questionable, and baseless investigation and litigation tactics.

SEC is currently involved in many high-profile nonfraud crypto cases like Kik and Telegram. The commission has not been serving in the public interest and with a considerable lack of transparency which has become evident over time with rising anecdotes from different people who had fallen prey to SEC’s tactics. 

Advertisement

Share
Published by
Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
Ad Disclosure: This site may feature sponsored content and affiliate links. All advertisements are clearly labeled, and ad partners have no influence over our editorial content.

Recent Posts

  • 24/7 Cryptocurrency News

Breaking: CME to Launch 24/7 Crypto Futures Trading Amid Rising Institutional Demand

Derivatives exchange CME Group has announced plans to begin offering 247/7  crypto futures and options…

October 2, 2025
  • Bitcoin News

Citigroup Predicts Bitcoin Could Climb to $231,000 in 12 Months

Banking giant Citigroup has revised its Bitcoin prediction to $231,000 in the next 12 months,…

October 2, 2025
  • 24/7 Cryptocurrency News

Ethereum and BMNR Rallies as BitMine Drops $1B on ETH, Analyst Hails “Most Bullish Setup Yet”

The Ethereum price and BMNR stock have recorded modest gains thanks to BitMine’s recent $1…

October 2, 2025
  • 24/7 Cryptocurrency News

ASTER Deposits Flows Into Binance Wallets Following CZ Endorsement, Listing Incoming?

In a fresh development, multiple ASTER tokens have been sent to Binance spot wallets, following…

October 2, 2025
  • 24/7 Cryptocurrency News

Avalanche Treasury Seals $675M Deal With Mountain Lake to Build $1B AVAX Vehicle

Avalanche Treasury Co., in partnership with Mountain Lake Acquisition Corp., has unveiled a $675 million…

October 2, 2025
  • 24/7 Cryptocurrency News

Just In: Nasdaq-Listed VivoPower Raises $19M in Equity to Expand XRP Treasury Holdings

Nasdaq-listed VivoPower has stepped up its digital treasury goals with a fresh capital raise aimed…

October 2, 2025