A well-known cryptocurrency attorney by the name of John E. Deaton has predicted that the United States would not regulate cryptocurrencies until at least the year 2025, and even that time frame may be too optimistic.
The attorney is of the opinion that the market will continue to gain direction exclusively from the judicial results of the SEC’s Regulation by Enforcement approach, which is headed by Gary Gensler, who is opposed to cryptocurrencies.
Deaton referred to the recent LBRY case, in which the SEC prevailed against the blockchain payment network in a lawsuit only a few short months ago, and said that the whole cryptocurrency sector has to work together to combat the SEC’s enforcement-only approach.
In March 2021, the SEC filed a complaint against LBRY on the grounds that the business was selling unregistered securities. The agency requested a judgment that would permanently enjoin the sale of the tokens, require the return of all proceeds plus interest, and impose civil penalties. However, it did not claim any fraudulent activity and did not file any criminal charges against any people associated with the company.
This case, as well as the one involving Ripple, has received a lot of attention since any case that touches on the age-old conundrum of determining whether cryptocurrencies could be considered securities or commodities is crucial.
Following the failure of FTX, the head of the SEC, Gary Gensler, issued a warning to the cryptocurrency sector that a regulatory crackdown on the cryptocurrency business is on the horizon.
Similar to casinos, the regulatory body will go after crypto enterprises that don’t comply with its laws, according to Gensler, who equates such organizations to gambling establishments.