News - Pro-Ripple lawyer claims SEC prioritizes corporate capitalism

By Ted Maas

Pro-Ripple lawyer claims SEC prioritizes corporate capitalism

Ripple (XRP)
Laws and regulations
World Economy

John Deaton, appellate attorney, is concerned about the effectiveness and fairness of the regulator, as well as the current legislative framework for digital assets.

Pro-XRP lawyer John Deaton believes that the U.S. Securities and Exchange Commission (SEC) is pursuing a broader agenda with its actions against the crypto sector. According to him, the SEC seems to prioritize corporate capitalism rather than safeguarding investors, which he considers an attack on cryptocurrencies. Deaton specifically points out the SEC's targeting of Coinbase and Ripple as examples of this approach.

During his speech, Deaton delves into various aspects, including the rules for accredited investors and the SEC's approach to regulating cryptocurrencies. On Twitter, he expresses his belief that the U.S. operates within a "framework" of corporate capitalism instead of a "true" capitalist system. To support his argument, he highlights various facets of the current financial landscape.

The lawyer criticizes the SEC for focusing mainly on exchanges and secondary markets, rather than tackling fraud within the crypto industry. According to Deaton, this approach sends the wrong message and indicates misplaced priorities, ultimately hindering the growth of the cryptocurrency sector.

In addition, Deaton points to the SEC's resistance to retail investors in the Ripple case, highlighting the use of "amici curiae" (friends of the court). This stance suggests a reluctance to consider the views of small investors, reinforcing the perception that the regulator favors larger financial institutions over individual investors.

Another concern raised by Deaton is the perceived double standard in cryptoregulation. He questions why the SEC did not engage with proactive entities like Coinbase while its Chairman, Gary Gensler, had multiple meetings with Sam Bankman-Fried, the former CEO of the FTX exchange. This unequal treatment raises doubts about the regulator's effectiveness and fairness in handling digital assets within the overall framework.

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