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.

For years I’ve said we don’t exist in a true capitalist system. We have corporate capitalism in the U.S. Look at the accredited investor rules and how they discriminate against the working class. Look at the attack on Crypto and the attack on Coinbase which allows non-accredited… https://t.co/JVis3xw30f
— John E Deaton (@JohnEDeaton1) July 29, 2023

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.

As I’ve said before, some of the best legal analysis I’ve read come from non-lawyers. Outstanding review. 👇 https://t.co/XJ9v1yoTIM
— John E Deaton (@JohnEDeaton1) August 1, 2023

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.