John E Deaton, a prominent figure in the XRP community, recently shared his thoughts on what needs to be changed at the US Securities and Exchange Commission (SEC). Speaking at the XRP 2023 conference, Deaton suggested that a law should be passed to prevent a “revolving door” between the SEC and the companies it regulates.
Under current regulations, employees of the SEC are free to leave and work for companies they were responsible for regulating, without any cooling-off period. This practice has come under scrutiny in recent years, with critics arguing that it creates conflicts of interest and undermines the SEC’s credibility.
Deaton’s proposal calls for a minimum three-year ban on SEC employees taking up jobs with companies they previously regulated. He argued that such a restriction would help to prevent the kind of cozy relationships that have been seen between regulators and Wall Street in the past.
Deaton has been a vocal critic of the SEC’s handling of the case, arguing that XRP is not a security and that the SEC’s lawsuit is baseless. He has also been leading a legal campaign on behalf of XRP investors, seeking to have their interests represented in the case.
The SEC has faced criticism from other quarters as well, with some accusing the agency of overstepping its authority and creating uncertainty in the cryptocurrency market. The agency has been accused of failing to provide clear guidelines on what constitutes security in the context of digital assets, leading to confusion and regulatory arbitrage.
Deaton’s proposal is just one of many that have been put forward in recent months as regulators and policymakers grapple with the fast-evolving cryptocurrency landscape. As the market continues to grow and mature, it is likely that there would be increasing calls for more precise and consistent regulation, as well as greater transparency and accountability from regulators.
In summary, John E Deaton has called for a law to be passed that would prevent a “revolving door” between the SEC and the companies it regulates, with a minimum three-year ban on employees taking up jobs with former clients. This proposal is part of a wider debate around the role and responsibilities of regulators in the rapidly evolving cryptocurrency market.
