Deaton’s law firm founder, Attorney John Deaton, recently filed a petition with the court to participate in the lawsuit as a representative of the XRP owners.
First, attorney John Deaton spoke out in favor of XRP in the Memorandum of the Law. As he mentioned earlier, several facts in the form of statements and decisions explain the coin as a virtual good rather than a security.
Before the SEC filed the lawsuit against XRP’s parent company, Ripple, it was said to be the third largest cryptocurrency in the world. Listed on over two hundred crypto exchanges. Like the top two companies Bitcoin and Ethreum, many senior SEC officials viewed XRP as a crypto asset. He wrote that the trio (BTC, ETH, XRP) were also considered “As a new emerging class.”
He also mentioned the ruling by DOJ (Justice Department) and FinCEN (Financial Crimes Enforcement Network) in which federal agencies viewed XRP as a virtual asset and ordered it to be registered exclusively with FinCEN.
Later, in the filing, attorney John Deaton also alleged to the SEC that he had misrepresented the XRP holders, alleging:
“The SEC allegations are riddled with material misrepresentations about XRP owners. their trust in Ripple, their use of XRP, and their independent development of the XRP ecosystem. “
He also stated the reason why they wanted to participate in the lawsuit as a second-party defendant:
“The defendants have also made it clear that they do not represent the interests of the XRP owners. Simply put, XRP owners cannot rely on the efforts of the defendant in this case. XRP holders are therefore trying to intervene in this enforcement measure, according to the Fed. R. Civ. P. 24. ”
Further, Deaton added that the SEC’s argument regarding the independent benefits of XRP also prompted them to file the application, alleging that XRPL was completely independent of Ripple and its executives and many of the contemporary uses made by the XRP Owners are not carried out in the knowledge of the executives.
Finally, it should be noted that the SEC has to file defense papers by May 3rd and Federal Judge Analisa Torres will make a decision by May 17th.