John Deaton, a pro-XRP lawyer, has brought forward serious allegations against the United States Securities and Exchange Commission (SEC). Deaton firmly believes that the actions taken by the SEC against the crypto industry are driven by a broader motive to safeguard corporate capitalism rather than prioritizing the protection of investors.
Deaton Raises Concerns About Unequal Treatment and Regulatory Effectiveness
Expressing his views on the matter, Deaton highlighted what he perceives as an assault on cryptocurrencies. This is with particular emphasis on the SEC’s actions targeting Coinbase and Ripple. Several aspects were addressed in his remark. These include the accredited investor rules, the SEC’s approach to regulating cryptocurrencies, and its position concerning retail investors in the Ripple case.
The lawyer took to Twitter (X) to express his conviction that the U.S. operates within a framework of corporate capitalism, which deviates from a genuine capitalist system. In support of his argument, he pointed out various facets of the present financial landscape.
One of the major concerns raised by Deaton is the SEC’s allocation of limited resources toward Section 5 cases. Also, its focus on targeting the secondary market on exchanges instead of addressing fraud within the crypto space. He firmly believes that such priorities are misplaced. Further, it could potentially hinder innovation and impede the growth of the developing cryptocurrency industry.
Additionally, Deaton shed light on the SEC’s opposition to retail investors participating as amici curiae (friends of the court) in the Ripple case. This stance, according to Deaton, suggests a reluctance to consider the views of retail investors. This further solidifies the perception that the regulatory body may prioritize the interests of larger financial institutions over those of individual investors.
Concerns About Double Standards in Crypto Regulation
Another significant issue highlighted by Deaton is the perceived double standard in crypto regulation. He criticizes the SEC for not engaging in dialogue with proactive entities like Coinbase. Also, he pointed out that SEC Chair had multiple meetings with Sam Bankman-Fried, the former CEO of FTX exchange.
The unequal treatment raises serious concerns about the regulatory body’s effectiveness and fairness. This is as well as the overall framework for digital assets. Deaton argues that the SEC’s differing approach to various industry players could impede innovative startup growth while potentially favoring more established entities.
These concerns warrant a closer examination of the SEC’s actions and the impact they may have on the cryptocurrency industry and its investors.
Read More:
Bendigo Bank of Australia Restricts High-Risk Transactions to Cryptocurrency Exchanges
Coinbase CEO Reveals SEC’s Demand to Delist All Cryptocurrencies Except Bitcoin