In a surprising revelation, prominent XRP lawyer John E. Deaton recently unveiled that certain lawyers at the Securities and Exchange Commission (SEC) claimed the application of the Section 4 exemption to XRP secondary market transactions. Deaton’s astute analysis and clarification of the intricacies within Section 4 of the Securities Act shed light on the provision, which places the burden of exemption on the token holder. However, Deaton emphasized that this exemption does not extend to secondary transactions, unraveling potential misinterpretations.