Attorney John Deaton has praised XRP holders for their significant impact on the SEC’s lawsuit against Ripple.
Deaton made the comments as the XRP community marks the third anniversary of Judge Analisa Torres’ landmark July 13, 2023 ruling, which determined that XRP itself is not a security.
Court Acknowledges XRP Holders’ Arguments
According to Deaton, a key indicator of the community’s influence is Judge Torres’ citation of his amicus brief filed on behalf of thousands of XRP investors. He noted that while other amicus briefs were also referenced, the court placed special weight on nearly 4,000 affidavits submitted by XRP holders—affidavits that were among the limited exhibits cited in the summary judgment ruling.
These affidavits supplied direct evidence supporting Ripple’s position that many XRP purchasers did not rely on the company’s managerial efforts to generate profits, a crucial factor under the Howey test.
Broader Legal Precedent from LBRY Case
Deaton further highlighted Footnote 16 of Judge Torres’ opinion, where she referenced an exchange from oral arguments in a separate LBRY case. He argues that this citation demonstrates Judge Torres considered broader legal principles concerning secondary market sales of digital assets.
Call for Formal Non‑Security Declaration
Deaton also emphasized a central request from his amicus brief: an explicit court declaration that XRP is not a security. He likened XRP to traditional assets such as gold, beavers, condominiums, chinchillas, and orange groves—assets that can be sold under investment contracts but are never classified as securities themselves.
XRP Community Continues to Celebrate Landmark Victory
The XRP community remains enthusiastic about the ruling, which clarified that XRP is not a security while differentiating between programmatic sales (non‑security) and institutional sales (unregistered securities). Ripple executives have repeatedly praised the token holders, represented by Deaton, for shaping this pivotal legal outcome in the digital asset industry.
