Attorney Claims Lawsuit Hindered XRP Adoption by 3 Years

A US district judge recently issued a summary judgment finding that transactions in XRP do not constitute “investment contracts” and therefore are not securities under federal law. This ruling comes amid an ongoing legal dispute between Ripple Labs, the creator of XRP, and the Securities and Exchange Commission over whether XRP should be classified as a security or commodity.

The judge’s decision states that the SEC did not adequately demonstrate that XRP holders had a reasonable expectation of profits derived from Ripple’s managerial efforts. Following this ruling, the market price of XRP increased substantially.

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Attorney John Deaton, who represents a group of XRP holders in a related lawsuit, argued in a recent post that the SEC’s action against Ripple has negatively impacted the adoption of XRP in the US market during the nearly three years since the suit was filed.

Deaton argued that Ripple and XRP adoption was growing significantly prior to the SEC’s lawsuit filed in December 2020. He stated that if not for the lawsuit, companies like Coinbase might have partnered with Ripple.

His comments follow Coinbase’s announcement that it has acquired a stake in Circle, the issuer of the USDC stablecoin. Coinbase said it aims to expand USDC’s use cases.

Also read: Ripple (XRP) Price Prediction: August End 2023

Deaton noted that before suspending XRP trading in January 2021, Coinbase had been a major promoter of XRP. He asserts that the SEC lawsuit has negatively impacted XRP adoption in the U.S. over the past nearly three years, despite Ripple’s continued success internationally.