XRP Price Outlook: John Deaton Admits Uncertainty Amid Market Speculation

Attorney and XRP enthusiast John Deaton has stated that it is difficult to accurately assess the impact of the SEC’s action against Ripple and $XRP on the company’s business.

When Ripple’s creators established XRP in 2012, there were no stablecoins and the global payments system was ripe for innovation.

At the time, Ripple was debating whether to focus on smart contracts or payments. In the end, Ripple elected to focus on cross-border payments, which he believes made sense given the market size and the absence of stablecoins at the time.

 

XRP/USD

The Ripple Effect: XRP’s SEC Battle, Coinbase Delisting, and the Shift to XLM

In 2019, Coinbase included XRP and marketed it as a quick and inexpensive way to send money overseas. Later that year, MoneyGram began using XRP for transfers. But barely 18 months later, the SEC filed a complaint, saying that all XRP, regardless of how it was acquired, was an unregistered security.

Following the litigation, Coinbase delisted XRP, and MoneyGram began using XLM instead. But Deaton wonders if there is a legal distinction between utilizing XRP or XLM for payments. However, Jed McCaleb, the originator of XLM, is also a Ripple co-founder. Deaton believes that the SEC’s complaint is far too broad. He additionally draws out that many of the people who worked for the prosecution against Ripple went on to work for Ripple’s competitors.

However, when you consider the facts around the filing of this complaint, including the tremendous conflicts of interest and the fact that the persons behind the lawsuit went on to aid or work for Ripple/XRP competitors, you don’t have to be an admirer to call it out, he added.

Ripple vs. SEC :The Future of XRP’s Legal Status

The legal battle between Ripple and the US Securities and Exchange Commission (SEC) has severely affected XRP since the case began in December 2020. The SEC’s appeal focuses on the landmark Programmatic Sales of XRP decision. In July 2023, Judge Analisa Torres decided that programmatic XRP sales did not meet the third prong of the Howey Test.

If the SEC successfully overturns the order, XRP will come under the agency’s regulatory jurisdiction. This may result in more exchanges delisting XRP in order to avoid breaking US securities regulations. It would also bolster the agency’s claims against cryptocurrency exchanges like Coinbase (COIN) and Binance. Furthermore, the SEC may reject the forthcoming XRP-spot ETF filings, adding additional hurdles.

In contrast, abandoning the appeal would establish the Programmatic transactions of XRP verdict as a legal precedent, which confirmed XRP’s non-security status in secondary transactions. It would presumably increase XRP demand. Approving XRP-spot ETF applications would also provide a large XRP tailwind.

XRP Price Analysis

Ripple’s XRP experienced volatility between Christmas and New Year’s Eve, momentarily falling below $2. However, bulls swooped in on the first two days of 2025, raising the price to as high as $2.42. XRP is currently worth $2.38, which reflects a 12.97% increase over the last 24 hours.

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ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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