Attorney John E Deaton caused quite a furor after tweeting that he owns “objective empirical evidence” that proves that about 60% of XRP holders were not aware of Ripple when they’d first invested in the token. As a result, according to the Howey Test, it is close to impossible to establish that the XRP community was “relying on the promises and inducements of a promoter or company they’re oblivious to.”
The US SEC will have to answer to the core of the matter, aka Why does XRP hold the securities status, in less than a month, by December 6th, 2021, which makes it one of the most important dates for holders of XRP.
Attorney Deaton received the amici curiae status from the court in October in order to present legal questions and concerns that the XRP community and Individual Movants have. The US SEC hasn’t changed its claim about securities status for XRP and has even alleged the violation of the Securities Act by the defendants in lieu of selling the digital assets.
But, the Movants, had already attacked this idea in October, claiming that if XRP sales are marketed as illegal, it would mean that the number of people who are guilty far surpasses Ripple and individual defendants.
Individual Movants claimed that the SEC’s case against Ripple “directly attack[s] XRP Holders” via mischaracterizations of XRP Holders’ use of XRP and XRP’s connection to Defendants. Movants attacked SEC’s claim that “the very ‘nature of XRP itself’ makes it a security,”, by stating that this will lead to the conclusion that “‘every individual in the world who is selling XRP would be committing a Section 5 violation,’” which means the XRP Holders’ XRP will be affected by the outcome of this litigation.
Despite how involved the XRP community is in proving the SEC wrong, the XRP token holders still have their assets frozen and a run that is rather bearish, despite the overall bull seasons that the general market has experienced this year. Due to the lawsuit, XRP holders are not able to use their funds in any way, which also includes the inability to withdraw them.