- Lawyer John Deaton said the new Binance.US CEO played a pivotal role in classifying XRP.
- Deaton asserted that the SEC and the government possessed a wealth of knowledge about Ripple before the lawsuit.
- Deaton believes the new appointment might carry positive connotations.
Following a recent leadership change at Binance.US, where Norman Reed has been appointed the CEO, John Deaton, founder of Crypto-Law.us, took to X to share insights regarding Reed’s past involvement with Ripple.
The lawyer highlighted that Reed formerly served as the General Counsel of Ripple. He mentioned that Reed played a pivotal role in the 2015 FinCEN Department of Justice (DOJ) settlement that impacted the classification of XRP.
Norman Reed used to be the General Counsel of @Ripple. His signature is on the 2015 FinCEN DOJ settlement with Ripple, which classified #XRP a “convertible virtual currency.” Btw, @katie_haun signed the settlement agreement on behalf of the DOJ. As part of the settlement,… https://t.co/F2QLjy4ksZ— John E Deaton (@JohnEDeaton1) September 16, 2023
In particular, Deaton pointed out that Norman Reed’s signature graced the 2015 settlement agreement, officially categorizing XRP as a “convertible virtual currency.” Additionally, he cited that Kathryn Haun, a former Assistant U.S. Attorney and Digital Currency Coordinator, signed the settlement on behalf of the DOJ.
Furthermore, Deaton noted that as part of the settlement, Reed, representing Ripple, committed to hiring an independent auditor approved by the DOJ to provide FinCEN with a comprehensive audit of all XRP sales over a period of five years.
Moreover, the lawyer mentioned that an information-sharing agreement existed between FinCEN and the Securities and Exchange Commission (SEC). He said it granted the SEC unfettered access to all the auditor’s XRP sales reports.
The whole point is that Deaton sought to assert that the SEC and the U.S. government possessed a wealth of knowledge about Ripple, possibly surpassing their understanding of any other crypto company.
Deaton believes Norman Reed’s transition to BinanceUS from his previous roles at the SEC and the Federal Reserve Bank of New York adds a layer of intrigue to the suit around Ripple. “That really places the lawsuit [against Ripple] in perspective now, doesn’t it?” he remarked.
Meanwhile, Deaton noted that this appointment might carry positive connotations, yet he believes uncertainties abound.
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