<p>Pro-XRP lawyer John E. Deaton likes to point out constantly via his X account that XRP is not a security and urges SEC to realize that as well in the<a href="https://captainaltcoin.com/sec-getting-ready-to-end-xrp-case-schedules-another-secret-meeting-with-ripple/" target="_blank" rel="noopener noreferrer nofollow"> ongoing legal battle with Ripple</a>.</p>
<p>This time, John highlighted 3 articles/documents that SEC should read before judging XRP.</p>
<h2 class="wp-block-heading" id="key-documents-that-challenge-the-sec-s-position">Key Documents That Challenge the SEC’s Position</h2>
<p>John Deaton points to a 2018 legal article by former CFTC Chairman Christopher Giancarlo. Known as “Crypto-Dad” for his friendly approach to digital assets, Giancarlo clearly stated that <a href="https://captainaltcoin.com/ripple-xrp-price-prediction/" target="_blank" rel="noopener noreferrer nofollow">XRP</a> is not a security. His opinion carries weight because as the former head of the Commodity Futures Trading Commission, he knows exactly what makes something a commodity rather than a security.</p>
<p>In the Forbes article Deaton shared, Giancarlo explained that XRP doesn’t have the typical features of securities. He noted that XRP holders don’t primarily expect profits from other people’s work. Instead, XRP works more like a currency or commodity. This directly challenges how the SEC has been treating XRP in its case against Ripple.</p>
<blockquote class="twitter-tweet">
 <p>Three things the folks at the SEC should read: <br><br>1) <a href="https://twitter.com/giancarloMKTS?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@giancarloMKTS</a> aka Crypto-Dad’s 2018 law article concluding XRP is NOT a security. Giancarlo is Former Chairman of the <a href="https://twitter.com/CFTC?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@CFTC</a> and therefore, knows what a commodity is. <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f447.png" alt="👇" style="height: 1em; max-height: 1em;"><a href="https://t.co/cHyPouzkQn" target="_blank" rel="noopener noreferrer nofollow">https://t.co/cHyPouzkQn</a><br><br>2) SEC enforcement lawyers wrote… <a href="https://t.co/orKT6DOngG" target="_blank" rel="noopener noreferrer nofollow">https://t.co/orKT6DOngG</a></p>— John E Deaton (@JohnEDeaton1) <a href="https://twitter.com/JohnEDeaton1/status/1900240888716013598?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">March 13, 2025</a>
</blockquote>
<p>The second document Deaton highlighted is quite revealing – it’s an analysis by the SEC’s own enforcement lawyers from June 13, 2018. These SEC staff members reviewed XRP using the Howey test but didn’t conclude it was a security. They also didn’t recommend taking any action against Ripple, Brad Garlinghouse, or Chris Larsen.</p>
<p>Deaton also mentioned a letter from December 2020, written by former SEC Commissioner Joe Grundfest to Jay Clayton and other SEC leaders. In this letter, Grundfest pleaded with the SEC not to treat XRP differently from Ethereum. He warned that doing so would raise serious questions about the SEC’s fairness and motives.</p>
<p><em><strong>Read also: <a href="https://captainaltcoin.com/xrp-etfs-likely-to-be-approved-very-soon-heres-the-expected-date/" target="_blank" rel="noopener noreferrer nofollow">XRP ETFs ‘Likely’ to Be Approved Very Soon—Here’s the Expected Date</a></strong></em></p>
<h2 class="wp-block-heading" id="the-ethereum-comparison-in-settlement-talks">The Ethereum Comparison in Settlement Talks</h2>
<p>Reporter Charles Gasparino recently shared some inside information about the settlement talks between Ripple and the SEC. According to his sources, the SEC is now considering whether<a href="https://captainaltcoin.com/xrp-price-prediction-ripple-token-forms-bullish-signals-but-theres-a-catch/" target="_blank" rel="noopener noreferrer nofollow"> XRP’s current trading</a> and real-world use make it more of a commodity than a security.</p>
<p>The comparison with Ethereum seems to be a major factor in these discussions. Gasparino pointed out that both ETH and XRP started in similar ways – both tokens helped fund the development of their platforms. Yet somehow, Ethereum avoided SEC enforcement while Ripple got sued.</p>
<blockquote class="twitter-tweet">
 <p>SCOOP: Off of <a href="https://twitter.com/EleanorTerrett?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@EleanorTerrett</a>'s scoop from yesterday on the <a href="https://twitter.com/Ripple?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@Ripple</a> – <a href="https://twitter.com/SECGov?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">@SECGov</a> settlement negotiations, one issue that is being weighed by the commission is whether <a href="https://twitter.com/search?q=%24XRP&amp;src=ctag&amp;ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">$XRP</a> continues to trade and have a utility that makes it more a commodity and not a security. I am told the…</p>— Charles Gasparino (@CGasparino) <a href="https://twitter.com/CGasparino/status/1900230903449751651?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">March 13, 2025</a>
</blockquote>
<p>The apparent reason? The SEC believes Ethereum changed over time into a commodity. Now in the settlement talks, they’re comparing the two cryptocurrencies closely. The SEC already accepts that Ethereum trades as a commodity today. They’re now trying to figure out if they can say the same thing about XRP.</p>
<p>It seems increasingly likely that the<a href="https://captainaltcoin.com/xrp-price-on-the-edge-as-ripple-vs-sec-battle-takes-a-surprising-turn-after-lawyers-insights/" target="_blank" rel="noopener noreferrer nofollow"> SEC’s case against Ripple and XRP </a>may be heading toward a resolution favorable to Ripple. Even observers without a stake in crypto or legal expertise can see the apparent inconsistencies in the SEC’s approach. With former regulators, internal SEC documents, and the Ethereum precedent all pointing in a similar direction, the pressure is building on the SEC to reconsider its position.</p>
<p><em><strong>Follow us on <a href="https://x.com/CaptainAltcoin_" target="_blank" rel="noopener noreferrer nofollow">X (Twitter)</a>, <a href="https://coinmarketcap.com/community/profile/CaptainAltcoin/" target="_blank" rel="noopener noreferrer nofollow">CoinMarketCap </a>and <a href="https://www.binance.com/en/square/profile/captainaltcoin" target="_blank" rel="noopener noreferrer nofollow">Binance Square</a> for more daily crypto updates.<br>Get all our future calls by joining our <a href="https://t.me/captainaltcoincom" target="_blank" rel="noopener noreferrer nofollow">FREE Telegram group.</a></strong></em></p>
<div class="bigofferblock margincenter mb30 pt20 pl20 pr20 " style="">
 <div class="col_wrap_two mb0">
  <div class="offerbox_big_wrap flowhidden">
   <div class="image position-relative text-center col_item mobileblockdisplay img-maxh-350 img-width-auto"><a href="https://captainaltcoin.com/go/etoro/" target="_blank" rel="noopener noreferrer nofollow"> <img width="500" alt="We recommend eToro" src="https://captainaltcoin.com/wp-content/themes/rehub-theme/images/default/blank.gif"> </a>
   </div>
   <div class="product-summary col_item mobileblockdisplay">
    <h3 class="product_title entry-title font150 lineheight25 mb30" id="a-href-https-captainaltcoin-com-go-etoro-target-_blank-rel-noopener-noreferrer-nofollow-span-we-recommend-etoro-span-a"><a href="https://captainaltcoin.com/go/etoro/" target="_blank" rel="noopener noreferrer nofollow"> <span>We recommend eToro</span> </a></h3>
    <div class="rev_disclaimer font70 greencolor lineheight15 mb20"><strong>Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. <a href="https://www.etoro.com/customer-service/terms-conditions/trading-restriction/" target="_blank" rel="noopener noreferrer nofollow">Take 2 mins to learn more</a></strong>
    </div>
    <div class="buttons_col mb25 rh_big_btn_inline">
     <div class="priced_block clearfix">
      <div><a href="https://captainaltcoin.com/go/etoro/" target="_blank" rel="noopener noreferrer nofollow"> Visit eToro Now </a>
      </div>
     </div>
    </div>
    <div class="bigofferdesc"><i> </i>Active user community and social features like news feeds, chats for specific coins available for trading. <br><i> </i>Wide range of assets: cryptocurrencies alongside other investment products such as stocks and ETFs. <br><i> </i>Copy trading: allows users to copy the trades of leading traders, for free. <br><i> </i>User-friendly: eToro’s web-based platform and mobile app are user-friendly and easy to navigate.
    </div>
   </div>
  </div>
 </div>
</div>
<p>The post <a href="https://captainaltcoin.com/pro-ripple-lawyer-exposes-secs-own-writings-that-question-its-xrp-stance/" rel="noopener noreferrer nofollow">Pro-Ripple Lawyer Exposes SEC’s Own Writings That Question Its XRP Stance</a> appeared first on <a href="https://captainaltcoin.com" rel="noopener noreferrer nofollow">CaptainAltcoin</a>.</p>

Pro-Ripple Lawyer Exposes SEC’s Own Writings That Question Its XRP Stance

Table of Contents

CaptainAltcoin

Other articles published on Mar 14, 2025

Join our free newsletter for daily crypto updates!