Pro-XRP lawyer John Deaton has accused SEC Chair Gary Gensler of ‘gaslighting’ the public regarding the ongoing Coinbase rulemaking dispute. This accusation comes as a direct contradiction to Gensler’s earlier statements made during congressional testimony in 2023.
Coinbase vs. SEC Legal Battle Unravels
The legal dispute between Coinbase and the United States Securities and Exchange Commission (SEC) has taken a contentious turn, with John Deaton voicing his concerns about Gensler’s stance on cryptocurrencies.
The SEC rejected Coinbase’s crypto rulemaking petition, citing three primary reasons: the application of current securities laws to cryptocurrencies, the SEC’s involvement in crypto securities markets through rulemaking, and the importance of preserving the commission’s discretion in establishing rulemaking priorities.
Contradictory Statements and Sharp Contrast to Congressional Testimony
In a notable post on X (formerly Twitter), Deaton highlighted Gensler’s statement explaining the SEC’s decision. Gensler asserted that “there is NOTHING unique or new about cryptocurrencies,” challenging Coinbase’s request, which hinges on the uniqueness of the crypto ecosystem in terms of asset volatility and asset categorization under existing laws.
Deaton pointed out a stark contrast between Gensler’s current stance and his statements during congressional testimony earlier in the year. Gensler, at that time, acknowledged the unique nature of crypto, emphasizing a regulatory gap due to its distinct characteristics.
Political Motives, Senatorial Backing and SEC’s Approach to Cryptocurrency
In a surprising turn, Deaton attributed Gensler’s about-face on the crypto issue to political motives, suggesting support from Senator Elizabeth Warren as a driving force.
The SEC’s approach to the cryptocurrency ecosystem remains ambiguous, with conflicting messages from Gensler’s statements and the commission’s overall actions. Notably, the regulatory body chose not to appeal its defeat against Grayscale Investments amid ongoing disputes with Coinbase and Binance.
Divergent Paths: Coinbase, Binance, and Grayscale
While grappling with legal challenges from Coinbase and Binance, the SEC decided not to appeal its loss against Grayscale Investments. The case involved Grayscale’s endeavor to transform its Grayscale Bitcoin Trust into a spot exchange-traded fund.
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