John Deaton, the owner of the Deaton Law Firm, tweeted on the SEC against Ripple lawsuit, presenting records from the court.
Related: Ripple Released Its Approach to Crypto Regulation
The case, started in December 2020, with the regulatory authority accusing Ripple Labs of the XRP token sale, saying it was unregistered security, takes new turns.During recent court hearings, U.S. Magistrate Judge Sarah Netburn wondered if according to the theory of the SEC all the individuals who sold XRP violated the law.
Judge Netburn recognized the SEC’s over-broad and far-reaching theory that all XRP are securities when she recognized, according to the SEC’s own argument, that every person in the world selling #XRP is committing a Section 5 violation.
— John E Deaton (@JohnEDeaton1) November 21, 2021
Read the SEC’s response back to her.👇 pic.twitter.com/HLO0YuT1wa
As an answer to this question, Senior Trial Counsel in the Division of Enforcement of the SEC, Jorge Tenreiro said according to Section 4, people carrying out transactions in the market are exempted by statute.
In his Tweet, the lawyer says that the attorney of the Ripple CEO Brad Garlinghouse, Matthew C. Solomon was right in his statement that each domestic sale could be a violation and that includes not only the company but all the retail holders and parties with the intention of distributing the "security" further. Mr Solomon said the SEC doesn't have proof that XRP is a security and ironically the agency will have to amend their initial complaint.
Lately, Coinbase CEO Brian Armstrong twitted on the case, saying the lawsuit is going surprisingly well for Ripple. He added people who the SEC finds it protecting, are actually the ones who are attacking them.