• Ripple and the SEC are in a lawsuit and the XRP community attorney is representing the holders of the token.
• Paul Grewal, CLO of Coinbase responded to Deaton’s legal explanations, sparking calls for XRP to be relisted.
• According to Deaton, an “investment contract” is one of the most misunderstood legal terms and digital assets by their nature are not listed in this 90-year-old law.
SEC Lawsuit Against Ripple
Ripple is being sued by the US Securities and Exchange Commission (SEC), with John E. Deaton representing holders of its token in court. The XRP community has been pushing for Coinbase to relist their token on its platform again ever since it was delisted last year.
Coinbase CLO Responds To Deaton’s Legal Explanations
The Chief Legal Officer (CLO) of Coinbase, Paul Grewal, expressed his support for Ripple’s legal opinion several times in recent weeks. He agreed with John E. Deaton’s opinion on what constitutes an investment contract, but Coinbase has yet to respond to calls for XRP to be relisted once again.
“Investment Contract” Defined By Congress
Deaton has explained that “investment contracts” were adopted from state law by Congress when it passed the 1933 Act and digital assets are not included in this law which is over 90 years old. Therefore, a cryptocurrency cannot be classified as a security based on secondary sales alone – a reality that was made clear in Telegram’s case as well as Kik and LBRY’s cases too.
“Investment Contract” Misunderstood On Social Media
The popular XRP community attorney believes that this term is one of the most misunderstood ones on social media due to its legal complexity which originates from Howey’s case back in 1946 where it was initially defined by Supreme Court justices.
Community Hopeful For Relisting Of XRP
Despite Coinbase filing an amicus brief in support of Ripple, there have been no signs so far that they will re-list XRP soon enough despite Grewal expressing his agreement with John E Deaton’s legal opinion on what constitutes an investment contract – giving hope amongst members of the XRP community