June 20 (Cointime) - According to cryptocurrency advocate and lawyer John Deaton, XRP secondary market transactions do not qualify as securities. Deaton's statement was in response to a tweet by former SEC director Marc Fagel, who suggested that the question of whether secondary market transactions require Howey analysis is still open.

Deaton argued that the Howey test should be applied to each subsequent sale and cited examples of cases such as Telegram and Aqua-Sonic to support his claim that the underlying asset is not a security. He also disagreed with the SEC's right to pursue novel theories and suggested the Fair Notice Defense be invoked if they do so.