Crypto lawyer John E. Deaton stated that over 75,000 XRP holders provided critical support to Ripple CEO Brad Garlinghouse and Executive Chairman Chris Larsen during the SEC's lawsuit against the company, which was filed in December 2020 and concluded in August last year. Deaton's remarks followed Garlinghouse's recent disclosure that Ripple nearly collapsed after the SEC sued. The sustained backing from XRP holders, who joined the case as amici curiae, helped Ripple withstand years of regulatory pressure and choose litigation over settlement, according to Deaton. The case became a defining battle over regulatory overreach in the U.S. cryptocurrency industry.
75,000 XRP Holders Joined Ripple Case as Amici Curiae
Deaton acknowledged that Garlinghouse and Larsen remained resilient and did not yield to SEC intimidation tactics, even after being sued personally. He credited the more than 75,000 XRP holders who joined the case as amici curiae, calling their participation unprecedented and a critical source of support that strengthened Ripple's resolve throughout the multi-year legal battle. Deaton argued that Ripple's decision to fight rather than settle delivered major legal victories, protected hundreds of jobs, and helped reshape the regulatory landscape for the U.S. crypto industry.
SEC Named Ripple Executives to Increase Settlement Pressure
Deaton cited comments made by former SEC Chairman Jay Clayton during a pre-lawsuit discussion with Stanford law professor Joseph A. Grundfest to explain why the SEC named Ripple's top executives in the lawsuit. According to Deaton, Clayton acknowledged that naming executives in enforcement actions, even when fraud is not alleged, can increase pressure to settle. Deaton argued that although the SEC never alleged fraud, the complaint was drafted in a way that resembled a fraud case, amplifying public scrutiny and damaging Ripple's reputation. He accused the SEC of pursuing overly aggressive litigation tactics, alleging that agency lawyers sought sweeping personal financial records from Garlinghouse, Larsen, and members of their families despite Ripple already providing records of every XRP transaction requested.
Court Denied SEC Requests for Personal Financial Records
The court denied the SEC's requests for personal financial records from Ripple executives and their family members. Deaton pointed to the SEC's conduct in the separate Debt Box case, where agency attorneys were sanctioned by a federal judge, arguing it reinforced broader concerns about the regulator's enforcement practices. Deaton stated that the Ripple case evolved into a defining battle over regulatory overreach, in which determined leadership supported by more than 75,000 XRP holders kept Ripple alive, preserved hundreds of jobs, and helped shape the future of cryptocurrency regulation in the United States.
FAQ
When did the SEC sue Ripple?
The SEC sued Ripple in December 2020.
How many XRP holders joined the Ripple case as amici curiae?
More than 75,000 XRP holders joined the case as amici curiae, according to John Deaton.
When did the Ripple SEC lawsuit conclude?
The lawsuit concluded in August last year.
