John Deaton Advocates for Ripple Lawsuit Dismissal Amid Crypto Regulation Debate

Prominent crypto lawyer John Deaton has called for the dismissal of the long-standing Ripple vs. SEC lawsuit, along with other high-profile cases initiated by the Gary Gensler-led SEC.

His statements have sparked widespread reactions within the crypto community, particularly from the XRP army, as the discussion coincides with Donald Trump’s inauguration on January 20.

Deaton Challenges SEC’s Crypto Crackdown

Deaton, founder of Crypto Law, criticized the SEC’s regulatory actions, arguing they have stifled innovation and driven businesses away from the U.S. In a detailed post on X (formerly Twitter), he labeled the SEC’s approach under Gensler as a “waste of time, energy, money, and resources.”

Companies like Ripple, Coinbase, Kraken, and LBRY have been embroiled in expensive legal battles, with Ripple alone spending $150 million defending itself against the SEC’s allegations.

Deaton accused the SEC of attempting to intimidate Ripple’s co-founders, Brad Garlinghouse and Chris Larsen, through unfounded lawsuits, which were ultimately dismissed due to lack of merit.

Impact of SEC Actions on Investors and Businesses

Deaton highlighted the broader harm caused by these lawsuits, citing a $15 billion market loss and the participation of over 75,000 investors rallying for better regulations. He emphasized the adverse effects on XRP holders, noting that delisting the token froze many retirement accounts and discouraged businesses from collaborating with Ripple.

The regulatory uncertainty created by the SEC’s scrutiny has undermined trust and hindered innovation in the U.S., Deaton argued. He stressed that dismissing non-fraud cases like Ripple’s would restore confidence and promote a healthier environment for crypto innovation.

A Call for a Fresh Start

Deaton linked his push for regulatory reforms to the inauguration of Donald Trump, framing it as an opportunity to usher in a “Golden Age of innovation.” He suggested that dismissing cases against companies like Ripple, Coinbase, Kraken, and Dragonchain would align with an era of favorable policies that encourage technological advancements.

Conclusion

Deaton’s appeal for case dismissals underlines the need for a balanced regulatory approach that fosters innovation while addressing legitimate concerns. Ending non-fraud crypto cases could signal a shift toward constructive engagement between regulators and the crypto industry, building trust and enabling sustainable growth.

Whether these changes materialize under the new administration remains to be seen, but the dialogue reflects growing frustration within the industry over current enforcement policies.