Pro-XRP lawyer John Deaton has criticized crypto critic and American TV personality Jim Cramer for his recent statements on the Ripple Labs-associated token in a newly surfaced video that took a look at previous comments the ‘Mad Money’ host made on CNBC.
However, these sentiments did not sit well with Deaton, who has been deeply involved in the XRP community amidst the legal battle with the Securities Exchange Commission (SEC). In a post on X (formerly Twitter), Deaton labeled Cramer’s stance as either ‘fake or ignorant’ regarding his comments about XRP.
“Let me show you just how fake or ignorant Jim Cramer is being in the video below. He says, ‘What do we know about XRP? Nothing.’ Jim is either truly ignorant (not in the name-calling way – but ignorant on the subject matter), or he is being completely fake, lacking integrity.”
Cramer’s comments had suggested that XRP remains an enigmatic and unregulated digital asset. However, Deaton provided a comprehensive counterargument to challenge the ‘Mad Money’ host’s assertions.
Government’s knowledge of XRP
Deaton pointed out a series of key facts and legal developments that directly contradict Cramer’s narrative. Firstly, he emphasized that the United States Government Accountability Office (USGAO) classified XRP as a ‘virtual currency utilized in a decentralized payment protocol called Ripple’ back in 2014.
Furthermore, in 2015, the Department of Justice (DOJ) and the Financial Crimes Enforcement Network (FinCEN) settled with Ripple, classifying XRP as a “convertible virtual currency” and ordering Ripple to comply with U.S. banking laws, not securities laws.
The legal expert also highlighted that the SEC was well aware of these classifications at the time. In 2019, XRP was recognized in an annual report filed by the Financial Stability Oversight Council (FSOC) alongside other cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Litecoin (LTC) as ‘virtual currencies’ gaining in market capitalization. The report was signed by the SEC chair and Treasury Secretary, among others.
XRP global recognition
Deaton further underscored that XRP’s recognition extended beyond the United States. It was publicly traded on over 200 exchanges worldwide and has received virtual currency classifications in various countries, including the United Kingdom, United Arab Emirates, Singapore, Switzerland, and Japan. These countries explicitly declared that XRP was not a security.
In addition, Deaton criticized Cramer for not taking the time to conduct a simple Google search to verify these facts, implying that his comments were either reckless or intentional.
“The point is this: if Jim Cramer wasn’t aware of all this, he could’ve been within minutes of using Google. Instead, he chose to say what he did, which was reckless or intentional. Either one, he should be embarrassed and ashamed,” he added.
Notably, XRP recently secured partial relief within regulatory circles when a court ruled that the token should not be classified as a security. Meanwhile, the crypto community is awaiting the second phase of the case, in which the SEC plans to appeal the decision, with the trial expected to commence in 2024.