- Pro XRP attorney John Deaton identified a developer of the XRPLedger who didn’t receive financial assistance from Ripple.
- Developer Jaskaran Kambo filed an amicus brief supporting Ripple through testimony that could invalidate SEC’s common enterprise theory.
- Ripple’s win against the SEC becomes more likely with the new evidence, Deaton says.
Attorney John Deaton, an XRP proponent and founder of Crypto-Law US, identified a developer of the XRPLedger who didn’t receive any funds from the payment firm, a case that could help Ripple defend itself in the lawsuit against the Securities and Exchange Commission (SEC).
Jaskaran Kambo, founder and CEO of cryptocurrency payment app SpendTheBits (STB) and one of XRPLedger developers, allegedly did not have any formal contract with Ripple.
Kambo’s case, outlined in an amicus brief filing in the Ripple case, has the potential to refute the SEC’s claim that Ripple acted as a “common enterprise” when developìng XRP, Deaton said. These developments are bullish for XRP holders and Ripple in the long term.
Also read: US SEC likely to approve spot Bitcoin ETFs, catalyzing marketwide recovery in crypto
XRPLedger developer files amicus brief, supports Ripple
Pro Ripple attorney John Deaton connected with a developer of the XRPLedger, Jaskaran Kambo, associated with the SpendTheBits project. Deaton claims that this developer did not receive any financial assistance from Ripple. The Pro-Ripple attorney says that this fact weakens the SEC’s allegations against Ripple.
I believe [Kambo’s case] is the best example demonstrating the inherent flaw in the SEC’s theory
Deaton said on a Twitter message.
The SEC accused Ripple of “common enterprise,” meaning the fortunes of the investors are tied to the person offering the investment. This argument is likely flawed if Kambo's case is considered by Judge Analisa Torres, who presides over the SEC’s case against Ripple. Moreover, Deaton said it is likely that the judge Torres considers XRP’s secondary market transactions.
SpendTheBits has filed an amicus brief in the Ripple case, strengthening the payment giant’s defense against the US financial regulator. Deaton considers Jaskaran Kambo and the SpendTheBits project as the best example that demonstrates the flaw in SEC’s theory against Ripple and its executives.
SEC vs. Ripple case update
The SEC brought a lawsuit against Ripple and its executives, alleging the payment giant of the sale of unregistered securities. The SEC’s allegations against Ripple include a theory of common enterprise. The new developments could support Ripple in fighting the SEC’s allegations. To find out more about the SEC’s lawsuit against Ripple, check this.
Ripple’s Chief Legal Officer Stuart Alderoty claims that the US financial regulator’s lawsuit against the payment giant benefits the firm. Ripple’s defense against the US SEC is beneficial to the crypto industry in the long run, he said.
The latest update in the SEC vs. Ripple case is the departure of a lawyer, attorney Kylie Chiseul Kim, from Ripple’s defense team. This does not negatively influence the verdict of the lawsuit in any way, Deaton said.
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