By Michael Scott
According to John Deaton, the unfair treatment evokes concerns regarding the agency’s fairness, efficacy, and the digital assets’ overall framework.
A pro-XRP attorney, John Deaton, has revealed that the United States Securities and Exchange Commission’s actions against the crypto industry are influenced by a wider rationale to protect corporate capitalism instead of focusing on investor protection.
Deaton described what he considers a war on cryptocurrencies, especially regarding the agency’s actions focusing on Ripple and Coinbase. He considered numerous aspects, including the agency’s approach to regulating cryptocurrencies as illustrated by its stance regarding retail investors in the Ripple case and accredited investor regulations.
United States Retrogressing Under Corporate Capitalism Orchestrated by Regulatory Agencies
Via X (Twitter), Deaton believes that the United States utilizes a corporate capitalism framework instead of an honest capitalist one. He focused on the current financial environment to strengthen his argument.
Deaton admits in his Twitter post ruling out the existence of a real capitalist ecosystem. He laments that the United States is stuck in corporate capitalism. Consider the accreditor investor regulations and how they impact the working class. Consider the attacks on Coinbase and crypto for an agency that should facilitate talent attraction and nurture innovation in the digital asset space.
SEC Lacks Adequate Resources and Framework to Supervise and Resolve Crypto Fraud
Deaton claimed the Securities and Exchange Commission’s provision of inadequate resources and its major focus on secondary markets on exchanges rather than solving fraud in the crypto environment shows confusion in priorities. He said the approach could prevent innovation and hamper the developing cryptocurrency industry’s growth.
Deaton also focuses on the agency’s disapproval of retail investors taking part in the Ripple case as amici curiae (friends of the court). Due to this viewpoint, he proposes an unwillingness to consider retail investors’ perspectives. This additionally strengthens the insight that the SEC might consider bigger financial institutions’ interests and disregard those of smaller investors.
ProXRP Lawyer Questions SEC Fairness in Regulatory and Enforcement Conduct
Deaton draws attention to a significant concern regarding an alleged double standard in crypto regulation. In this case, he slams the Securities and Exchange Commission for not being involved in dialogue with proactive firms, for instance, Coinbase. In addition, Garry Gensler, the agency’s chair, and Sam Bankman-Fried, the ex-CEO of the collapsed FTX exchange, held several meetings.
The unfair treatment evokes concerns regarding the effectiveness and fairness of the regulatory agency and the digital assets’ overall framework. This different approach to different players in the industry could hamper the growth of innovative startups while supporting the more established firms.