In a recent Twitter exchange, John Deaton, the founder of Crypto-Law.US and a prominent supporter of Ripple, criticized the legal environment provided by the U.S. Securities and Exchange Commission (SEC) for cryptocurrency companies.
When responding to a tweet from a user concerned about the importance of “KYC-related crypto factors” for security and system centralization, Deaton expressed agreement that large token holders should be required to disclose their identities and provide the proportion of tokens they control.
He emphasized that Ripple Labs has demonstrated transparency by implementing cryptographic escrow and starting to publish quarterly reports on XRP sales volume. However, he personally noted that the SEC has used this transparency against Ripple and CEO Brad Garlinghouse in the ongoing litigation process.
The ongoing legal battle between Ripple and the SEC is still awaiting further rulings, but the disclosure of documents and emails related to the infamous Hinman speech has created a positive sentiment that the XRP lawsuit is nearing its conclusion.