The XRP Community’s Role in Ripple Labs’ Legal Victory
The XRP community played a pivotal role in Ripple Labs’ recent victory against the United States Securities and Exchange Commission (SEC), a legal battle that concluded last month following an agreement to withdraw appeals from both parties involved. This lawsuit, initially filed by the SEC in 2020, accused Ripple of conducting an unregistered sale of its XRP token, which the regulator classified as a security.
Significant Ruling by Judge Analisa Torres
In a significant ruling in 2023, Judge Analisa Torres determined that while certain XRP sales could be categorized as securities, a majority of tokens sold on public exchanges were not. After a lengthy legal struggle, the case officially wrapped up in August 2023.
Community Influence and Advocacy
Crypto advocate and attorney John Deaton, known for his strong support of XRP holders, asserted that the influence of the “XRP Army” was undeniable in shaping the outcome of the case. He emphasized on social media that any assertion to the contrary stems either from ignorance or deliberate misinformation. Deaton clarified that there is substantial evidence to confirm the XRP community’s impact.
Grassroots Efforts and Contributions
Ripple’s vice president and deputy general counsel, Deborah McCrimmon, echoed these sentiments during a recent podcast, highlighting how the efforts of Deaton and the XRP community increased awareness of the case’s broader implications beyond Ripple alone. She acknowledged that the grassroots work of the XRP supporters significantly bolstered Ripple’s position as they sought to employ a fair notice defense—arguing that the SEC failed to provide clear guidance regarding its enforcement of the law concerning cryptocurrencies.
McCrimmon noted that the XRP community spontaneously assisted by gathering historical statements and speeches related to blockchain and XRP, which Ripple utilized to support its case. She stated,
“While we didn’t ask them to help, their contributions were invaluable—I could have spent thousands hiring lawyers for this work.”
Judge Torres’ Considerations
In her final ruling, Judge Torres considered over 2,000 exhibits presented in the case, referencing both Deaton’s amicus brief and affidavits from XRP holders. Deaton observed that had the Judge not referenced these documents, one could question the extent of the contributions made by the community. He believes these references confirm how collective action can lead to significant change, underscoring that individual efforts can inspire widespread action.
