Pro-Ripple attorney John Deaton has accused regulators of politically and economically coordinating attacks on cryptocurrency. In a 26-minute video, Deaton shared his insights on recent happenings in the banking and crypto sector and also spoke about the SEC v Ripple case. Deaton believes that the recent attacks on crypto are not coincidental but are orchestrated by regulators. He referred to a statement by Barney Frank, the man behind the Dodd-Frank Act, which accuses New York regulators of deliberately attacking Signature Bank to send an anti-crypto message. The signature bank is known for giving loans to crypto companies. Crypto brokerage firm and stablecoin issuer Paxos disclosed that it holds $250 million at the Signature bank. Similarly, Coinbase also disclosed recently that it holds a corporate cash balance of $240 million with the bank. Deaton also mentioned that there would not be any crypto regulation until maybe after two years.
Deaton believes that until regulatory clarity comes, crypto retail holders, investors, and all stakeholders must fight by seeking clarity in the court. He thinks that SEC’s lawsuits against some crypto companies are not supported by serious positions. He also mentioned the Grayscale v. SEC case where the court questioned the SEC’s decision to disapprove the company’s Bitcoin ETF application. Deaton highlighted that with every such fight, the industry is winning in court, and stakeholders must keep their focus.
On the show where Deaton spoke, J.W. Verret, an associate professor of Law, also shared his insights on the expectations from the SEC V. Ripple case. According to Verret, if SEC does not get reasonable, there is a higher chance of the case heading to the Supreme Court. The SEC is trying to treat tokens of decentralized networks as securities and DeFi (decentralized finance) protocols as exchanges. Verret thinks it is wrong to make computer code register as a stock exchange and comply with all the rules and regulations of a stock exchange. Verret pointed out that the SEC is overstepping its boundaries since it cannot determine that.
Deaton also questioned why NYAG sued KuCoin, claiming that ETH (Ethereum) is a security and not suing the others. Crypto News Flash does not endorse or is responsible for any content, accuracy, quality, advertising, products, or other materials on this page. It is recommended that readers do their own research before taking any actions related to cryptocurrencies. Crypto News Flash is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods, or services mentioned.
Regulators worldwide have been closely scrutinizing the crypto industry over the past few years. There has been increasing pressure on crypto companies to comply with regulatory norms. Many countries have introduced new regulations, while some others have adopted a wait-and-watch approach. The US has been facing a regulatory tussle within the crypto industry, with the SEC filing lawsuits against some companies. Ripple is one such company that has been facing SEC criticism for a while. The lawsuit against Ripple is widely followed since the verdict may set a precedent for the US crypto industry.