John Deaton, an XRP lawyer, suggests that the US Securities and Exchange Commission (SEC) is motivated by corporate capitalism rather than investor protection in its actions against the crypto industry. Deaton describes the SEC’s recent actions against Coinbase and Ripple as an ongoing attack on cryptocurrencies. He discusses the SEC’s crypto regulation, accredited investor rules, and Ripple retail investor position.
Pro-XRP Lawyer Deaton claims on X (Twitter)
Taking to X (Twitter), Deaton asserts that the U.S. operates within the framework of corporate capitalism, rather than a genuine capitalist system. To support his argument, he points to several facets of the current financial landscape.
The pro-XRP lawyer questions the SEC’s use of limited resources on Section 5 cases and its focus on exchange secondary markets rather than crypto fraud. He claims that such a misallocation of resources may stifle innovation and slow cryptocurrency industry growth.
Deaton also notes the SEC’s reluctance to let retail investors act as amici curiae in the Ripple case. This suggests that the regulatory body may favor large financial institutions over individual investors.
Deaton also worries about crypto regulation’s double standard. He criticizes the SEC for failing to engage with proactive entities like Coinbase, while noting that SEC Chair Gary Gensler had multiple meetings with Sam Bankman-Fried, the former CEO of the defunct FTX exchange.
This unequal treatment calls into question the regulatory body’s efficacy and digital asset framework. The SEC’s different approaches to industry players may hurt innovative startups while benefiting established companies.
Deaton’s perspective on crypto regulation reminds us of the complexities and consequences of regulatory decisions on the crypto industry’s future. The balance between corporate interests and investor protection requires careful consideration and open discussion.