As the prolonged legal battle between the SEC and Ripple executives begins to surface again, renowned crypto lawyer and U.S. Senate candidate John Deaton has joined in the discussion.
In his post, John Deaton acknowledged the tens of thousands of $XRP holders who he claimed played a crucial role in helping the executives withstand the SEC during the trying time.
John Deaton blasts SEC lawyers
The discussion started after Ripple CEO Brad Garlinghouse revisited the company’s legal ordeal with the SEC, recounting how the company almost wound down at the time.
Deaton joined the discussion, responding to the viral comment of Ripple CTO Emeritus David Schwartz, who also confirmed the unpleasant situation, revealing that the lawyers advised top Ripple executives to cut a deal to save themselves, with claims that the company was “unsavable”.
Deaton expressed full belief in Schwartz’s story, noting that the SEC’s decision to sue Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen alongside the company was intended to pressure them into making a quick settlement.
Although Schwartz suggested that the SEC lawyers could have named Brad Garlinghouse and Chris Larsen personally because it is possibly the expected response to such a lawsuit, Deaton alleged that it was a tactic to intimidate the executives into settlement deals.
Deaton praises Ripple executives for not backing down
To further support his claims, Deaton made reference to an interview featuring former SEC Chairman Jay Clayton, where Clayton discussed the benefits associated with naming individual executives in enforcement actions. He mentioned that the benefits even extend to cases that do not involve fraud allegations.
While Clayton made the remarks before the Ripple lawsuit, Deaton revisited the matter, arguing that it was the same approach applied during the Ripple lawsuit to force settlements.
Deaton further argued that such an approach is capable of causing personal and financial pressure on executives facing litigation from the U.S. government.
He ended his arguments by singing the praises of the Ripple executives and the 75,000 $XRP holders who supported them throughout the journey to eventually win the case against the SEC.
