John Deaton shares his views on SEC's crypto regulation.
A prominent lawyer and XRP supporter John Deaton has stirred up controversy by suggesting that the United States Securities and Exchange Commission's (SEC) actions towards the cryptocurrency sphere focus on preserving corporate capitalism rather than protecting investor rights.
Deaton's assertion focuses on what he interprets as the SEC's adversarial approach to cryptocurrencies, particularly about the regulatory body's treatment of industry behemoths like Ripple and Coinbase.
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The lawyer drew attention to several points, including the SEC's strategy for cryptocurrency regulation, its rules on accredited investors, and its stance on retail investors in the Ripple case.
Deaton shared his beliefs on X, claiming that the US operates more under the ethos of corporate capitalism rather than embodying a capitalist system. To support his point, he refers to various elements of the current financial landscape.
XRP advocate criticized the SEC's allocation of its limited resources towards Section 5 cases and its attention on secondary market exchanges while ignoring crypto fraud. He argues that this misdirected focus could potentially hinder innovation and curb the growth of the rapidly evolving crypto sector.
Deaton also drew attention to the SEC's resistance to allowing retail investors to participate as amici curiae (friends of the court) in the Ripple case.
In his opinion, this stance signifies a hesitation on the part of the regulatory body to acknowledge the perspectives of retail investors, thus further intensifying the belief that the SEC may favor the interests of large-scale financial institutions over those of individual investors.
An area of major concern for Deaton is the perceived inconsistency in the SEC's approach to regulating cryptocurrencies. He criticizes the SEC for its unwillingness to engage in constructive dialogue with proactive firms such as Coinbase. Meanwhile, Gary Gensler, Chair of the SEC, had several meetings with Sam Bankman-Fried, the former CEO of the now-defunct FTX exchange.
It is worth noting that in June, Deaton's phone was hacked and used to promote the LAW token on his then-Twitter account.
Attorney John Deaton suggests the SEC's strategies may stifle crypto innovation by favoring corporate interests over a balanced regulation, indicating possible inequity in the digital asset regulatory framework.
