Pro-XRP lawyer, John Deaton, has said that the actions taken by the United States Securities and Exchange Commission (SEC) against the crypto industry are driven by a broader motive to safeguard corporate capitalism rather than prioritizing the protection of investors.
Deaton highlighted what he views as an assault on cryptocurrencies, particularly in relation to the SEC’s actions targeting Coinbase and Ripple. In his remarks, he touched on several aspects, such as the accredited investor rules, the SEC’s approach to regulating cryptocurrencies and its position concerning retail investors in the Ripple case.
On X (Twitter), Deaton expresses his conviction that the U.S. operates within a framework of corporate capitalism rather than a genuine capitalist system. He highlights various facets of the present financial landscape to bolster his argument.
For years I’ve said we don’t exist in a true capitalist system. We have corporate capitalism in the U.S. Look at the accredited investor rules and how they discriminate against the working class. Look at the attack on Crypto and the attack on Coinbase which allows non-accredited… https://t.co/JVis3xw30f
— John E Deaton (@JohnEDeaton1) July 29, 2023
As per the legal expert’s analysis, the SEC’s allocation of limited resources towards Section 5 cases and its focus on targeting the secondary market on exchanges, instead of addressing fraud within the crypto space, indicates a misplacement of priorities. He contends that this approach could potentially hinder innovation and impede the growth of the developing cryptocurrency industry.
Additionally, Deaton highlights the SEC’s opposition to retail investors participating as amici curiae (friends of the court) in the Ripple case. With this stance, Deaton suggests a reluctance to consider the views of retail investors, further solidifying the perception that the regulatory body may prioritize the interests of larger financial institutions over those of individual investors.
Related: Blockchain could save financial institutions $10B by 2030: Ripple
Deaton highlights a major concern about a perceived double standard in crypto regulation. He criticizes the SEC for not engaging in dialogue with proactive entities like Coinbase, while SEC Chairman Gary Gensler had multiple meetings with Sam Bankman-Fried, the former CEO of FTX, an offshore crypto exchange facing allegations of defrauding users. This inconsistency in the SEC’s approach troubles Deaton.
The unequal treatment raises concerns about the regulatory body’s effectiveness and fairness, as well as the overall framework for digital assets. The SEC’s differing approach to various players in the industry could impede the growth of innovative startups while potentially favoring more established entities.
Magazine: Crypto regulation: Does SEC Chair Gary Gensler have the final say?
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