John Deaton Credits Ripple’s Legal Wins and Trump’s Victory for SEC’s XRP ETF Acknowledgment
Key Highlights:
- John Deaton attributes the SEC’s acknowledgment of XRP ETFs to Ripple’s legal victories and Donald Trump’s re-election.
- The SEC has recognized XRP ETF applications from Grayscale, CoinShares, Bitwise, and other major platforms.
- Ripple and XRP have navigated significant legal and regulatory challenges since 2020, leading to their current momentum.
SEC Recognizes XRP ETFs: Deaton Weighs In
The U.S. Securities and Exchange Commission (SEC) has taken a pivotal step by acknowledging XRP ETF applications from multiple asset managers, including CoinShares, Canary Capital, and WisdomTree. This development marks a major shift in regulatory sentiment toward XRP.
In response, pro-XRP attorney John Deaton reflected on the transformative journey of Ripple and XRP over the past four years. Deaton noted that despite facing significant hurdles, Ripple has secured key court victories, while Donald Trump’s presidential win has further influenced regulatory shifts.
XRP ETF Acknowledgment: A Game-Changer for Ripple
The SEC’s acknowledgment of XRP ETF applications has ignited optimism within the XRP community. In a recent X post, Deaton emphasized the stark contrast between XRP’s legal battle in 2020 and its current progress, stating:
“What a difference four years of litigation and an election can bring.”
Deaton believes the SEC’s recognition of XRP ETFs is a direct result of Ripple’s legal triumphs and Trump’s pro-crypto stance, both of which have helped shape a more favorable regulatory environment.
Institutional Interest in XRP ETFs Surges
Major investment firms are rushing to launch XRP ETFs, following Grayscale’s proposal to convert its XRP Trust into an exchange-traded fund (ETF). The filing led to subsequent 19b-4 applications from CBOE and Nasdaq.
The SEC’s acknowledgment of Grayscale, 21Shares, and Bitwise ETF applications has further fueled market optimism. More recently, it also recognized filings from CoinShares, WisdomTree, and Canary Capital, signaling growing institutional interest in XRP.
Ripple’s Legal Battle and Trump’s Influence on SEC’s Stance
Two major factors have influenced the SEC’s decision to acknowledge XRP ETFs:
- Ripple’s Court Wins:
- In 2020, the SEC accused Ripple of selling unregistered securities, alleging it raised $1.3 billion illegally.
- After a lengthy legal battle, Judge Analisa Torres ruled in favor of Ripple, declaring that XRP, in its digital token form, is not a security.
- In August 2024, a follow-up ruling distinguished between institutional and retail sales, further clarifying XRP’s regulatory status.
- Trump’s Re-Election & Pro-Crypto Policies:
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- Trump’s return to office has led to significant regulatory shifts, paving the way for a more crypto-friendly environment.
- His administration’s stance on blockchain innovation and market-friendly policies is expected to benefit Ripple and other crypto assets.
Ripple’s Growth Since the 2020 SEC Lawsuit
Ripple, founded in 2012, was a leading payments platform before the SEC lawsuit in 2020. At its peak, XRP hit an all-time high of $3.317 during the 2017-2018 bull run, gaining over 19,000%.
However, the lawsuit heavily impacted XRP, causing major exchanges like Coinbase, Binance, and Kraken to suspend trading of the asset. As a result, XRP’s price and market cap plummeted, causing it to lose market dominance.
Recently, XRP has experienced a strong comeback, driven by:
- Ripple’s legal victories
- Trump’s election win
- SEC’s acknowledgment of XRP ETFs
XRP has reclaimed its position as the third-largest cryptocurrency on CoinMarketCap, surging to $3.2 while eyeing its previous all-time high. John Deaton continues to highlight Ripple’s resurgence and growing momentum, underscoring its evolving role in the crypto space.
