Lawyer John Deaton says the online community known as the XRP Army helped shape the outcome of the long-running SEC v. Ripple case by filing extensive testimony and affidavits that were cited in court.
Deaton pointed to “over 2K exhibits” and the thousands of affidavits submitted by XRP holders as evidence the community made a tangible difference. In a post on X he argued the judge explicitly referenced holder statements when ruling that XRP itself is not a security for exchange sales — a point he says removes doubt about the community’s impact.
The dispute began in 2020 when the U.S. Securities and Exchange Commission sued Ripple and two executives, alleging XRP sales constituted unregistered securities offerings. In October 2023, U.S. District Judge Analisa Torres issued a split decision: institutional sales were deemed securities transactions, while secondary-market sales on public exchanges were not. The litigation concluded in August 2025 after both sides dropped appeals.
Members of the XRP Army say they organized to submit written statements describing how they acquired and used XRP. One supporter, James Rule, told reporters he submitted six affidavits describing being paid and spending income in XRP. Other community members told the court some holders used XRP without any direct relationship with Ripple, a point used to argue against an expectation of profit tied to the company.
Deaton also filed an amicus brief backing Ripple’s position. Whether the community’s filings materially shifted legal reasoning is a matter of interpretation, but the judge’s citation of holder affidavits strengthens the argument that public testimony helped frame the practical use-case of XRP.
Why this matters: The decision narrowed how securities law applies to crypto sales and may guide future enforcement. Traders and businesses should note ongoing legal uncertainty around institutional offerings and the compliance risks they pose.
Source: Decrypt. Read the original coverage for full details.
