Stop Protecting American Public, Pro-XRP Attorney Tells SEC Chair
10 May 2023 - 5:00AM
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The pro-XRP Attorney and crypto lawyer John Deaton has told SEC
Chair Gary Gensler to retreat his regulatory actions. The attorney
demands that the commission stop protecting Americans by lashing on
crypto companies. The United States has increased the tension in
its crypto industry through unclear regulatory measures. Crypto
regulators like the Securities and Exchange Commission (SEC) also
affect crypto firms with multiple enforcement actions.
Related Reading: Bitcoin To Drop Further? Whales Show Signs Of
Dumping Stop Protecting American Public While Harming Crypto Firms,
John Deaton In a statement via Twitter in response to
Gensler’s post appreciating SEC’s staff for upholding the
commission’s mission, Attorney Deaton asked SEC boss Gensler to
stop protecting the American public. On behalf of the American
public we ask you to please stop protecting us. — John E Deaton
(@JohnEDeaton1) May 8, 2023 The SEC has enacted enforcement actions
against several crypto entities through its forceful regulatory
measures. Some include the Ripple (XRP) blockchain, Paxos (Issuer
of BUSD stablecoin), Bittrex, Coinbase, and others. In December
2020, the SEC sued Ripple Labs and some of its executives over the
sale of XRP tokens under the Howey Test, stating that the asset
passed the definition of an investment contract. Related Reading:
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So Attorney Deaton maintained that XRP is not a security but a
digital currency, and the lawsuit has been taking several turns and
is still ongoing. The activity of the US SEC on crypto firms in the
US has evoked a lot of reactions, especially from top firms such as
Coinbase. However, the commission has maintained that its
actions are measures to protect Americans. Moreover, in a video,
last month, the SEC chair maintained that intermediaries for
investment contracts should comply with securities laws and
register fully with the SEC. He also said that the law only
cares about “what something is and not what you call it” As such,
digital asset investment firms that list securities must comply
with the investor protection obligations like other firms. SEC
Pushing Legal Boundaries With Ripple Lawsuit Crypto lawyer John
Deaton mentioned earlier that the SEC is pushing legal boundaries
by claiming that Ripple violated securities laws. According to a
Bloomberg Law publication, Deaton stated that the SEC’s allegation
against XRP is beyond legal contemplation and court rulings on
securities. The lawyer mentioned that the US Supreme Court in 1946
defined security in its ruling on SEC v. Howey case. So, the ruling
could not account for the complex digital assets with encrypted
computer code after almost a century. Featured image from Thinking
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