TLDR
John Deaton says Ripple’s XRP holdings don’t control XRPL, citing validator independence.
XRP Ledger uses consensus, not mining, and validators act without Ripple’s approval.
Over 75,000 XRP holders from 140+ countries backed Deaton’s decentralization claim.
Judge Torres denied Ripple-SEC motion to reduce penalties, citing public interest.
The debate around the decentralization of XRP has seen renewed attention. Pro-Ripple attorney John E. Deaton has now responded to repeated claims that XRP is a centralized token. In his view, these claims are not based on how the XRP Ledger actually works.
Deaton’s remarks come as discussions around Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC) continue. He argues that judging decentralization only by Ripple’s holdings of XRP is not accurate. Ripple holds around 40% of XRP, but Deaton states that this does not mean the network is centralized.
Deaton Disputes Centralization Based on Ripple’s XRP Holdings
John Deaton has stated that Ripple’s XRP holdings do not directly control the XRP Ledger (XRPL). He explained that it is wrong to assume ownership of tokens equals network control. “People often confuse the token with the network,” Deaton said, urging people to look at how the system operates.
According to Deaton, true decentralization should be measured by network activity and global participation. He pointed to the more than 75,000 XRP holders from over 140 countries who supported his amicus motion. This, he said, is a better indicator of decentralization than token supply ownership.
How the XRP Ledger Works
The XRP Ledger uses a consensus protocol instead of mining. It allows validators to approve transactions without needing Ripple’s permission. These validators operate independently, and many are not affiliated with Ripple.
Ripple Chief Technology Officer David Schwartz has stated that validators are not paid and have no incentive to act against the network’s interest. Ripple can propose changes to the network, but it cannot implement them without a majority of validators agreeing.
Deaton supports this explanation, saying Ripple’s influence is limited by the consensus rules. He emphasized that the XRPL cannot be controlled by any single party, including Ripple. The company holds XRP, but it does not run the network.
Legal Update: Court Rejects Ripple’s Joint Motion with SEC
In a separate development, U.S. District Judge Analisa Torres has rejected a joint request by Ripple and the SEC. The motion aimed to dissolve an injunction and reduce a penalty from $125 million to $50 million. The court was not convinced that such changes served the public interest.
Judge Torres stated that final rulings are meant to protect broader legal principles and not only address the wishes of involved parties. “None of this has changed,” she said, referring to previous findings of Ripple’s legal violations. The judge also recalled the SEC’s earlier claims that Ripple’s actions were “reckless” and long-term.
Ripple and the SEC reached a settlement after the departure of former SEC chair Gary Gensler. They hoped this would help revise earlier decisions. However, the judge said the enforcement actions they cited had not involved penalties or injunctions.
What Comes Next for Ripple and XRP
With the court denying the motion, the legal process is expected to continue. Legal experts believe the appeal process will now move forward unless Ripple accepts the original penalties. Lawyer Bill Morgan noted earlier this week that this may be Ripple’s only practical option.
While the case continues, John Deaton’s comments aim to shift public focus to the structure and technical function of the XRP Ledger. He maintains that centralization claims are misleading when not based on the actual mechanisms of control within the network.
At the time of writing, XRP has seen a slight decrease in value, falling 1.6% over the last 24 hours.
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