​SEC makes a mistake in classifying the XRP token as a security

What’s new? CryptoLaw CEO and attorney John Deaton, who represents Ripple in the lawsuit against the US Securities and Exchange Commission (SEC), revealed the regulator’s response to his writ of mandamus (a court order to enforce the plaintiff’s claim). In it, the agency acknowledged that only the court “decides if the SEC’s claim or theory is even valid.” In response, Deaton stated that “the SEC calling an asset a security does not mean it is a security.”

Everyone needs to remember the SEC calling an asset a security does NOT mean it is a security. Here is the SEC admitting that the Court decides if the SEC’s claim or theory is even valid. (This was the SEC’s response to my Writ of Mandamus). pic.twitter.com/NbncmC8LaN — John E Deaton (@JohnEDeaton1) June 11, 2023

SEC and Ripple. The regulator accused the company of selling XRP as an unregistered security in 2020. In May of this year, Ripple CEO Brad Garlingauchs said that the proceedings would conclude in the next few weeks.

In February 2023, Deaton said that the company would be willing to pay up to $250 million in fines if the SEC publicly announced that all current and future sales of XRP would not be recognized as securities transactions. In March, the attorney predicted XRP would rise after winning its case against the SEC.

What is known about Ripple? The payment protocol for exchanging and sending currencies is used by government agencies in Australia, Canada, and Israel. The XRP token acts as a bridge and provides liquidity for international transfers, making them faster and cheaper than the solutions of traditional services. As of June 12, the asset ranks sixth in the cryptocurrency ranking with a capitalization of $27 billion and is trading at $0,5166, having gained 1,87% overnight, according to Binance.

In June, Valhil Capital experts published a two-year research, according to which the fair value of XRP ranges from $3500 to $22 000. The lowest price is 677 406% higher than the current one, and the highest is 4 258 514%.

The Federal Reserve Bank of Atlanta previously called XRP an “international payment medium” in its review. However, the document does not explicitly say that the regulator plans to use the cryptocurrency for payments.