XRP Dips Below $2.70 as Centralization Debate Escalates—What’s Next?

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The crypto world erupted when investor Jason claimed XRP is a “centrally controlled security.” His statement triggered widespread reactions, prompting pro-XRP attorney John Deaton to respond. Deaton offered to educate Jason on the legal realities of XRP, emphasizing the asset’s decentralized nature. This controversy has reignited discussions about XRP’s regulatory status, price fluctuations, and future potential.

Investor Jason Claims XRP Is Centrally Controlled

Investor Jason posted on X, asserting that XRP differs from Bitcoin due to its alleged centralized control. He warned that the SEC’s leniency could disrupt financial markets by encouraging startups to dump tokens on retail investors. Jason suggested that only sophisticated investors should trade the token because they better understand the risks involved.

XRP is a centrally controlled security — is that even a question for anyone here?

According to every crypto OG I talk to, it's the opposite of Bitcoin.

If the SEC allows it to trade like Bitcoin, then securities law will be worthless.

There will be chaos in the markets as a… https://t.co/7FV4jqo1eA
— @jason (@Jason) February 16, 2025

His statement sparked immediate backlash within the XRP community. Many members criticized Jason for spreading misinformation, especially after XRP’s price dipped nearly 3%, falling below the $2.70 support level.

John Deaton Responds with Legal Clarity

John Deaton, a key figure in Ripple’s legal battle against the SEC, wasted no time responding. He took to X, sharing his perspective and offering to clarify XRP’s legal status for Jason:

As someone who publicly disclosed (while running for U.S. Senate) owning 80% of his net worth in Bitcoin and, as someone who fought the SEC over this very issue and won (with a lifelong democratic judge, appointed by @BarackObama, citing to my efforts and legal work), I’d be… https://t.co/X7yp7KAqE6
— John E Deaton (@JohnEDeaton1) February 17, 2025

“As someone who publicly disclosed (while running for U.S. Senate) owning 80% of his net worth in Bitcoin and, as someone who fought the SEC over this very issue and won (with a lifelong democratic judge, appointed by Barack Obama, citing to my efforts and legal work), I’d be happy to educate Jason on the law, if he desires.”

Deaton’s response quickly gained traction, with many praising his willingness to defend XRP and combat misinformation. He suggested that Jason’s claims reflected bias rather than a genuine concern for investor protection.

Ripple Community Unites to Defend XRP

The broader Ripple community swiftly supported Deaton. EGRAG CRYPTO, a prominent market analyst, criticized Jason for disabling comments on his post. He argued that this action prevented meaningful discussions about XRP’s decentralization.

“I used to respect you, Jason, but first open up the comment section so we can educate you, mate,” EGRAG CRYPTO wrote.

This sentiment resonated with many XRP enthusiasts, who questioned whether Jason’s political affiliations influenced his views. The community’s united front underscored their determination to dispel misinformation and promote XRP’s true status.

XRP’s Regulatory Status: Shifting Perspectives

The debate about XRP’s centralization emerged as the SEC acknowledged multiple XRP ETF applications. This development placed XRP alongside Bitcoin and Ethereum, both widely recognized as commodities. Although the SEC has not officially classified XRP as a commodity, this acknowledgment hints at a possible shift in regulatory perception.

Meanwhile, XRP’s price dropped 3%, dipping below the crucial $2.70 support level. Despite this decline, analysts remain optimistic. Some predict XRP’s price might reach $8 within the next 30 days, provided market conditions align with bullish forecasts.