Prominent pro-crypto lawyer and legal representative of XRP holders, John Deaton, has recently criticized the SEC, expressing his concerns about the agency’s functionality and integrity.
In a recent tweet, John expressed his emotions regarding the need for past chairpersons in the US government:
We need Crypto Dad, aka @giancarloMKTS, and Uncle Crypto, aka @BrianBrooksUS, back serving in the U.S. Government. https://t.co/RfYUVFJnFl
— John E Deaton (@JohnEDeaton1) May 16, 2023
Previously, Deaton conveyed his belief that the commission is an institution beyond defense, via a tweet. He added that the agency is broken and has failed to uphold its fundamental mission.
Deaton criticized the Securities and Exchange Commission (SEC) for mishandling the cryptocurrency market. Deaton expressed disappointment with the SEC’s reliance on dated cases in its briefs amidst the history and evolution of the cryptocurrency market. Deaton believes this approach does not provide the market with enough guidance and clarity.
The attorney, representing over 70,000 XRP token holders in their case against the SEC, claimed that the agency did not do enough to safeguard investors. He claimed the SEC refused to elaborate, although the agency’s lawyers acknowledged that the vast majority of LBRY customers did not invest. He also said “shame on you” to SEC Chair Gary Gensler for allegedly not safeguarding LBRY users.
Experts have emphasized the crucial role of the SEC in regulating the rapidly growing crypto industry. In a recent statement, Deaton highlighted that the agency needs to thoroughly assess its practices and policies to ensure they are compatible with the ever-evolving digital asset landscape. As demands for change continue to escalate, they expect the discussion to heighten in the upcoming months surrounding the effectiveness of the SEC and its influence on the cryptocurrency industry.
According to John Joy, Managing Attorney and Founder of FTI Law, the SEC is poised to emerge victorious in the race to regulate cryptocurrencies. Joy asserted that factors such as strategy, resources, and industry dynamics would prove more crucial than legal definitions in determining the outcome of this contest. The CFTC is unlikely to relinquish jurisdiction over crypto futures and derivatives markets, despite the potential for overlapping authority.
