SEC allegations against Ripple likely flawed, attorney John Deaton brings new evidence to light

Pro XRP attorney John Deaton identified a developer of the XRPLedger who didn’t receive financial assistance from Ripple.
Developer Jaskaran Kambo filed an amicus brief supporting Ripple through testimony that could invalidate SEC’s common enterprise theory.
Ripple’s win against the SEC becomes more likely with the new evidence, Deaton says.

Attorney John Deaton, an XRP proponent and founder of Crypto-Law US, identified a developer of the XRPLedger who didn’t receive any funds from the payment firm, a case that could help Ripple defend itself in the lawsuit against the Securities and Exchange Commission (SEC).

Jaskaran Kambo, founder and CEO of cryptocurrency payment app SpendTheBits (STB) and one of XRPLedger developers, allegedly did not have any formal contract with Ripple.

Kambo’s case, outlined in an amicus brief filing in the Ripple case, has the potential to refute the SEC’s claim that Ripple acted as a “common enterprise” when developìng XRP, Deaton said. These developments are bullish for XRP holders and Ripple in the long term.

Also read: US SEC likely to approve spot Bitcoin ETFs, catalyzing marketwide recovery in crypto

XRPLedger developer files amicus brief, supports Ripple

Pro Ripple attorney John Deaton connected with a developer of the XRPLedger, Jaskaran Kambo, associated with the SpendTheBits project. Deaton claims that this developer did not receive any financial assistance from Ripple. The Pro-Ripple attorney says that this fact weakens the SEC’s allegations against Ripple.

I believe [Kambo’s case] is the best example demonstrating the inherent flaw in the SEC’s theory

Deaton said on a Twitter message.

The SEC accused Ripple of “common enterprise,” meaning the fortunes of the investors are tied to the person offering the investment. This argument is likely flawed if Kambo's case is considered by Judge Analisa Torres, who presides over the SEC’s case against Ripple. Moreover, Deaton said it is likely that the judge Torres considers XRP’s secondary market transactions.

SpendTheBits has filed an amicus brief in the Ripple case, strengthening the payment giant’s defense against the US financial regulator. Deaton considers Jaskaran Kambo and the SpendTheBits project as the best example that demonstrates the flaw in SEC’s theory against Ripple and its executives.

SEC vs. Ripple case update

The SEC brought a lawsuit against Ripple and its executives, alleging the payment giant of the sale of unregistered securities. The SEC’s allegations against Ripple include a theory of common enterprise. The new developments could support Ripple in fighting the SEC’s allegations. To find out more about the SEC’s lawsuit against Ripple, check this.

Ripple’s Chief Legal Officer Stuart Alderoty claims that the US financial regulator’s lawsuit against the payment giant benefits the firm. Ripple’s defense against the US SEC is beneficial to the crypto industry in the long run, he said.

The latest update in the SEC vs. Ripple case is the departure of a lawyer, attorney Kylie Chiseul Kim, from Ripple’s defense team. This does not negatively influence the verdict of the lawsuit in any way, Deaton said.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.