SEC blocks crypto adoption
The SEC blocks crypto adoption, explains a well-known scene lawyer. However, the tide has already turned to the cryptocurrency XRP. Why the Ripple coin could take off soon.
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SEC blocks crypto adoption
The US Securities and Exchange Commission (SEC) is blocking crypto adoption to the detriment of entire industries and millions of investors – at least that’s what scene lawyer John E. Deaton claims.
The lawyer is convinced that the SEC lawsuit against crypto firm Ripple, filed in December 2020, made XRP look like a leper. Accordingly, hardly any company wanted to have anything to do with the coin.
Such a perception would actually be fatal, especially for a cryptocurrency like XRP, after all the token is designed as a means of payment for a banking network.
“One can NEVER underestimate the damage the SEC lawsuit has caused – NOT ONLY TO RIPPLE – BUT to XRP as well. THREE YEARS OF ADOPTION – that’s what stopped them,” Deaton wrote angrily on Twitter.
Deaton explains that three years is a very long time, especially in the rapidly developing crypto industry. According to his own statement, the self-declared XRP enthusiast also found his enthusiasm for the bank coin because the crypto exchange Coinbase explicitly promoted it.
People seem to forget how much Coinbase promoted XRP before the lawsuit. Personally, I doubled my XRP holdings AFTER Coinbase listed XRP and promoted the usefulness of XRP.
The lawyer provides an old image showing the Coinbase user interface. In the center of a graphic is XRP, next to the crypto exchange’s own stablecoin. In an info text, the company advertised the transfer of cryptocurrency due to the low cost and high speed.
Is XRP taking off now?
Deaton is convinced: The enthusiasm of Coinbase and other companies is based on the sheer usefulness of XRP. However, all of this was indirectly stopped by the SEC lawsuit.
The lawsuit has not been finally averted to this day, although a judgment was made in July in favor of Ripple. However, the SEC has since appealed. The further outcome is therefore to be awaited.
Ripple itself reported after the judgment in July that a number of banks had expressed an interest in using the token XRP and the associated RippleNet. In his detailed Twitter post, attorney Deaton explains that corporate interest in cryptocurrency was huge even before the SEC lawsuit.
For Deaton, this is another indication that the SEC’s lawsuit is based on false facts. According to this, XRP is not an investment contract that benefits from the advertising of the publisher – as the US regulator claims.
Another example is the financial service provider MoneyGram, which also wanted to access Ripple’s technology to better process cross-border payments.
In a letter to the SEC from June 2019, MoneyGram even explicitly explained how they wanted to use XRP.
The point is this: what could have happened in the last 3 years regarding the adoption of XRP if the lawsuit had never been filed? 🤷♂️ Would Coinbase announce today that it has acquired a stake in Ripple instead of Circle?
Despite these circumstances, XRP has been able to remain one of the largest cryptocurrencies and today ranks fifth by market capitalization. According to Deaton, that success relies 95% on the rest of the world. Had it not been for the conflicts in the US, XRP would be trading at a much higher price today, the attorney believes.
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