We Need To Know The Real Motive Behind SEC Lawsuit Against Ripple, Attorney Deaton Questions

what is ripple and how does it work.jpg
what is ripple and how does it work.jpg

The founder of CryptoLaw, John Deaton, remains active and vocal concerning crypto regulation and the ongoing legal battle between the US SEC and Ripple issuer Ripple.

In a tweet, the prominent XRP enthusiast weighed in on Brain Costello’s comment on former SEC chairman Jay Clayton’s recent interviewResponding to Costello, Deaton questioned the real motive behind the SEC’S lawsuit against Ripple Labs. 

The attorney said Americans need to know what Clayton discussed with current SEC chairman Gary Gensler on his last day in office on December 21, 2020.

Deaton Questions the Connection Between Clayton and Gensler’s Meetings with the Ongoing Ripple Vs. SEC Lawsuit 

Clayton’s public calendar shows he officially met with Gensler twice in the month he exited the office. The former SEC chairman’s first meeting with Gensler happened on December 14, 2020, while the second was on December 21, 2020.

The last meeting happened a day before the SEC sued Ripple Labs and two of its executives, Brad Garlinghouse and Christian Larsen. 

According to Deaton, Clayton directed the SEC enforcement division to file the lawsuit against Ripple on December 22, 2020, his last full day at work.

Deaton believes it’s highly unusual for the SEC to file a case of that magnitude on the day the chairman (Clayton) left officeThe prominent XRP advocate described the Ripple/SEC lawsuit as the most significant non-fraud enforcement action since 1946.

It is worth noting that within the same period, other top SEC officials, including directors of the Enforcement Division, Trading and Markets, and Corporation Finance, also exited the commission.

According to Deaton, Prof Joe Grundfast dubbed it a mass exodus that raised concerns, questioning the commission’s “use of discretion.” Deaton says the professor’s remark is another way of asking about the real motive for filing the case.

Crypto Advocate Calls for Probe into Former SEC Chair Clayton’s Conduct

It is worth noting that Brain Costello’s remark came in response to Jay Clayton’s recent interview with CNBC. 

During the interview, Clayton expressed concern regarding US regulators’ new enforcement approach involving multiple lawsuits against crypto-focused businesses.

Clayton stated that the new norms of US regulators deviate from the American view of the role of government. Commenting on the development, Costello said it’s time to investigate Jay Clayton’s concealment of China-related crimes.

He called SEC whistleblowers to shed more light on the issue and safeguard the nation.

Deaton Dismisses Rumors Claiming There Is Secrete Plot Behind the Ripple And SEC Lawsuit

The top US-based lawyer recently hosted a live broadcast addressing issues regarding the ongoing SEC lawsuit against the fintech company.

Deaton debunked some rumors circulating in the crypto space that the ongoing Ripple/SEC case is a staged lawsuit. The lawyer noted that everything about the case is genuine, with no secret plot.

He speculated the matter might reach the Supreme Court, as one of the parties in the case may appeal Judge Torres’ summary judgment.

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