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In a recent X (Twitter) post, XRP lawyer John E. Deaton aimed CNBC’s Mad Money host and TV personality Jim Cramer for making misleading statements about Ripple’s XRP. Deaton highlighted key facts that contradict Cramer’s assertions, shedding light on XRP’s legal classification and widespread recognition.
XRP’s Legal Status Is Documented Over The Years
Cramer, while talking in his show Mad Money exclaimed, “What do we know about XRP? Nothing.” Deaton responded to this by questioning Cramer’s knowledge and integrity. Deaton suggested that he either lacked information or was intentionally spreading false information about XRP.
Contrary to Cramer’s claims, Deaton clarified that XRP’s legal status has been extensively documented over the years. In 2014, the US Government Accountability Office (USGAO) classified XRP as a “virtual currency utilized in a decentralized payment protocol called Ripple.” Furthermore, in 2015, the Department of Justice (DOJ) and Financial Crimes Enforcement Network (FinCEN) settled with Ripple, classifying XRP as a “convertible virtual currency.”
According to Deaton’s tweet, Ripple was then subsequently instructed to adhere to U.S. banking rules rather than securities laws and supply the U.S. Government with an auditor’s report on all XRP sales every six months. All of this was known to the U.S. Securities and Exchange Commission (SEC) at the time.
Even more significant is the recognition XRP received from influential financial bodies. The Financial Stability Oversight Council (FSOC) highlighted XRP, alongside BTC, ETH, and LTC, as “virtual currencies” in its annual report in 2019. The chairman of the Securities and Exchange Commission (SEC), the chairman of the Commodity Futures Trading Commission (CFTC), the chairman of the Federal Reserve, and the US Treasury Secretary all signed this report.
Deaton also pointed out that XRP’s usage in cross-border payments was publicly disclosed by MoneyGram in June 2019. Moreover, XRP was actively traded on over 200 global exchanges. Several countries, including the United Kingdom, UAE, Singapore, Switzerland, and Japan, classified XRP as a virtual currency and explicitly stated that it was not a security.
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Deaton Calls Out Cramer For Misleading Statements On XRP
The core of Deaton’s argument is that Cramer could have readily found this material online, raising questions about his motivations for making such claims. Prominent Twitter handles address this incident talking about the broader issue of media accountability. They suggest that the media often covers individuals spreading inaccurate information.
Jim Cramer is a notable personality at CNBC and heads the CNBC investing club. His statements about XRP and Coinbase have sparked controversy, with critics pointing out that misinformation from influential figures can have significant consequences for the crypto market and investor sentiment.
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