• The article discusses the legal dispute between Ripple and the US Securities and Exchange Commission (SEC) regarding XRP holdings.
• John Deaton, a renowned cryptocurrency lawyer, shared his insights on Ripple’s XRP holdings during a recent Crypto Town Hall Spaces event.
• According to Deaton, SEC could have imposed ownership limits and given Ripple a specified period to reduce their holdings instead of initiating legal actions.
Ripple’s XRP Holding Dispute with US SEC
A recent Crypto Town Hall Spaces event featuring Scott Melker, Ran Neuner, Mario Nawfal, and Congressman Warren Davidson shed new light on Ripple’s XRP holding dispute with the U.S. Securities and Exchange Commission (SEC). Renowned cryptocurrency lawyer John Deaton spoke about his insights on the matter during the event.
Safe Harbor Proposal
In 2018, representatives from venture capital firm a16z presented William Hinman with a detailed memo along with a Safe Harbor Proposal that specifically mentioned Ethereum. This proposal may have laid the foundation for another one proposed by SEC Commissioner Hester Peirce later on. Despite potential advantages of this approach, both Hinman and Clayton raised concerns about it deviating from their preferred principle-based regulatory approach.
Hinman suggested that owning more than 30-40% of a token would be considered “substantial” amount but Deaton argued that if Ripple’s ownership percentage of XRP was an issue, SEC could have imposed ownership limits instead of initiating legal action against them. Additionally, Ripple has already been actively working towards reducing its holdings to cover legal expenses.
Concerns Raised by Congressman Davidson
Congressman Warren Davidson expressed concerns during the event about missed opportunities due to lack of clarity in regulations under former SEC Chairs Jay Clayton and William Hinman’s leadership. He highlighted how mismanagement of digital assets regulation led to losses for investors as well as stifled innovation in blockchain technology space due to fear among entrepreneurs about running afoul of regulators in future projects .
John Deaton concluded his remarks by echoing Congressman Warren Davidson’s sentiments about missed opportunities due to unclear regulations regarding digital assets under former SEC Chairs Jay Clayton and William Hinman’s leadership . He further highlighted how mismanagement led to losses for investors as well as hindered innovation in blockchain technology space due to fear among entrepreneurs about running afoul of regulators in future projects .