Pro-XRP lawyer, John Deaton, has raised concerns about the actions taken by the United States Securities and Exchange Commission (SEC) against the crypto industry. According to Deaton, these actions are not solely focused on protecting investors but are driven by a broader motive to safeguard corporate capitalism.
Deaton has specifically pointed to the SEC’s actions targeting Coinbase and Ripple as examples of this assault on cryptocurrencies. He believes that the SEC’s approach to regulating cryptocurrencies and its position on retail investors in the Ripple case reflect a prioritization of corporate capitalism over investor protection.
In a tweet, Deaton expressed his view that the U.S. operates within a framework of corporate capitalism rather than a genuine capitalist system. He cited the accredited investor rules and their discrimination against the working class as evidence of this. He also highlighted the attack on cryptocurrencies and Coinbase, which allows non-accredited investors to participate, as further examples.
One of Deaton’s main criticisms is the SEC’s allocation of limited resources toward Section 5 cases and its focus on targeting the secondary market on exchanges. He believes that this misplaced priority could hinder innovation and impede the growth of the cryptocurrency industry.
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Deaton also points to the SEC’s opposition to retail investors participating as friends of the court in the Ripple case. This stance suggests a reluctance to consider the views of retail investors, reinforcing the perception that the SEC may prioritize the interests of larger financial institutions over individual investors.
Another concern raised by Deaton is the perceived double standard in crypto regulation. He criticizes the SEC for not engaging in dialogue with proactive entities like Coinbase while Chair Gary Gensler had multiple meetings with Sam Bankman-Fried, the former CEO of the collapsed FTX exchange. This unequal treatment raises questions about the SEC’s effectiveness and fairness, as well as the overall framework for digital assets. It could potentially impede the growth of innovative startups while favoring more established entities.
Deaton’s arguments highlight the need for a balanced and fair regulatory approach to cryptocurrencies. While investor protection is important, it should not come at the expense of stifling innovation and hindering the growth of the industry. The SEC should consider the views and concerns of all stakeholders, including retail investors, in order to create an environment that fosters the development of a thriving and inclusive crypto ecosystem.
In conclusion, John Deaton believes that the SEC’s actions against the crypto industry are driven by a broader motive to safeguard corporate capitalism. He criticizes the SEC’s approach to regulating cryptocurrencies and its treatment of retail investors, highlighting a perceived double standard and a potential hinderance to innovation. Deaton’s concerns call for a balanced and fair regulatory framework that prioritizes both investor protection and the growth of the cryptocurrency industry.
