John Deaton, a legal expert known for representing XRP
He emphasized that the numerous testimonials provided by XRP holders contributed to the judge’s decision to acknowledge that, under certain circumstances, the digital token was not offered or sold as a security.
The legal proceedings began back in 2020, when the SEC brought charges against Ripple and two of its executives, alleging the unregistered sale of XRP.
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Over the following years, a strong online group of XRP holders emerged, frequently called the “XRP Army.” Deaton indicated that this community rallied around the legal battle and filed sworn statements with the court, detailing their individual usage of the XRP token.
These accounts outlined how XRP was acquired through exchanges as a digital asset, independent of direct engagement with Ripple. A common argument made was that their decisions to purchase XRP were not influenced by the company’s actions, nor did they expect to gain profits as a result of Ripple’s business operations.
Deaton emphasized that the inclusion of these accounts served as proof that the XRP community’s participation had a tangible effect. He suggested that if the presiding judge had not acknowledged the submitted statements, their relevance could have been questioned.
However, given their inclusion in the court’s considerations, he asserted that the community’s efforts played a significant role in shaping the court’s ultimate understanding of the case.
XRP advocates dedicated months to compiling and submitting their individual testimonies. Each affidavit acted as a formal assertion, providing perspectives on how retail investors interacted with and utilized XRP.
Deaton explained that these filings demonstrated that many users didn’t perceive XRP as an investment tied to Ripple’s success, helping the court to distinguish between retail users and larger, institutional investors.
On August 7th, both the SEC and Ripple jointly filed requests with the US Court of Appeals for the Second Circuit to dismiss their ongoing legal actions. To learn more about their reasoning, you can read the complete story here.