Attorney John Deaton Defends XRP Against Claims of Being a ‘Centrally Controlled Security’
The ongoing divide between XRP and the Bitcoin community has deepened discussions about what assets should be included in the proposed US strategic crypto reserve. Tech entrepreneur Jason Calacanis weighed in, riding X (formerly Twitter) asserting that XRP is “security of central control.”
In his post, Caracanis questioned the legitimacy of XRP as a decentralized asset, noting that “if the SEC allows it to trade like Bitcoin, then the securities laws will be worthless.” He warned that allowing XRP to be like Bitcoin-like running can cause chaos in the market and potentially have startups and funds unloading large amounts of coins on retail investors, resulting in instability.
Calacanis also believes that the chaos will not benefit the United States, as the country is known for its stable and controlled markets that attract global investment. He suggested that if XRP can only be traded by individuals who pass “complex investor tests”, it will ensure that people educate on risks before investing in projects like XRP.
However, Caracanis’ comments have sparked criticism from all corners of the crypto world. John Deaton, founder of Crypto Law, responded in a rebuttal, sharing a document that argued that XRP, as a digital token, did not meet legal requirements and was classified under the Howey test For investment contracts. Deaton said XRP is not a “contract deal or plan” and opposed the view of Calacanis that XRP is the security of central control.
https://twitter.com/cryptolawus/status/1891280912626659526
Another user pointed out and wrote: “Trump doesn’t care about investors’ protection – look at his approach to CFPB and other departments looking for these issues. Instead, he wants to provide huge amounts of money and have the opportunity to wool.” As the debate continues, XRP’s future in the U.S. cryptocurrency scenario remains uncertain and discussions are underway about its regulatory classification and potential inclusion in the national crypto reserves.
