Crypto lawyer and U.S. Senate candidate John Deaton has credited 75,000 XRP holders with helping Ripple executives withstand pressure from the Securities and Exchange Commission (SEC) during the regulator's lawsuit against the company. Deaton weighed in after Ripple CEO Brad Garlinghouse and Chief Technology Officer Emeritus David Schwartz publicly discussed the near-collapse of the firm under the legal assault.
Deaton Criticizes SEC Tactics
In a series of posts, Deaton echoed Schwartz's account that SEC lawyers had advised Ripple's top leaders to settle individually, suggesting the company was "unsavable." Deaton said the SEC's decision to name CEO Brad Garlinghouse and Executive Chairman Chris Larsen as defendants alongside Ripple was a deliberate tactic to force quick settlements. He pointed to a past interview with former SEC Chairman Jay Clayton, who acknowledged that naming individual executives in enforcement actions—even without fraud allegations—creates intense personal and financial pressure to settle.
Deaton argued that the approach was designed to intimidate Garlinghouse and Larsen into cutting deals that would have ended the case early. He praised the executives for refusing to back down, a decision he said was bolstered by the public support of tens of thousands of XRP holders.
Community Support Key to Victory
The lawyer highlighted that roughly 75,000 XRP holders actively supported Ripple's legal defense, helping the company weather the SEC's campaign. That backing, Deaton claimed, was instrumental in the eventual legal victory that saw a judge rule that programmatic sales of XRP on exchanges did not constitute securities transactions. The case remains ongoing in part, but the executives were cleared of personal liability, a result Deaton attributed directly to the community's involvement.
Deaton's comments come as the long-running SEC vs. Ripple saga continues to generate discussion, with the lawyer framing the episode as a cautionary tale about regulatory overreach and the power of grassroots crypto advocacy.