Prominent crypto lawyer and U.S. Senate candidate John Deaton has publicly credited the support of roughly 75,000 XRP holders for helping Ripple’s leadership withstand immense pressure during the company’s long legal battle with the U.S. Securities and Exchange Commission (SEC). The discussion resurfaced after Ripple CEO Brad Garlinghouse revealed that the company nearly shut down at the height of the litigation.
Garlinghouse’s comments prompted Ripple CTO Emeritus David Schwartz to confirm that legal advisers had urged top executives to cut a deal to save themselves, informing them that the company was “unsavable.” Deaton responded by stating that Schwartz’s account aligned with what he believed occurred behind closed doors.
According to Deaton, the SEC’s decision to sue Garlinghouse and Executive Chairman Chris Larsen personally alongside Ripple was a deliberate tactic to maximize settlement pressure. He argued that naming individual executives exposes them to significant personal liability, amplifying financial and emotional strain. While Schwartz noted that naming executives is a common regulatory practice, Deaton insisted the move was designed to force an early resolution rather than a fair legal outcome.
Deaton referenced an earlier interview with former SEC Chairman Jay Clayton, in which Clayton explained the strategic benefits of targeting individual officers—even in non-fraud cases. Deaton said this same enforcement approach was applied to the Ripple lawsuit, creating overwhelming incentives for executives to settle.
Despite the pressure, Deaton praised Garlinghouse and Larsen for refusing to back down, choosing instead to challenge the SEC’s claims in court. He attributed much of their resolve to the 75,000 XRP holders who formally backed his legal effort to represent their interests, demonstrating that the case affected retail investors as much as the company itself. “The community’s support strengthened Ripple’s leadership,” Deaton said, emphasizing that token holders played a meaningful role throughout the landmark court battle.
