According to John Deaton, the unfair treatment raises questions about both the broader framework for digital assets and the effectiveness and fairness of the regulatory agency.
John Deaton, an attorney who supports XRP, claims that the United States Securities and Exchange Commission’s (SEC) actions against the crypto business are motivated by a larger goal to protect corporate capitalism rather than placing a higher priority on investor protection.
In relation to the SEC’s proceedings against Coinbase and Ripple, Deaton emphasised what he sees as an assault against cryptocurrencies. He touched on a number of topics in his speech, including the criteria for accredited investors, the SEC’s strategy to regulating cryptocurrencies, and its stance on retail investors in the Ripple case.
Deaton shares his view that the United States doesn’t actually have a capitalist system in place; rather, it operates within a framework of corporate capitalism on X (Twitter). To support his claim, he draws attention to numerous aspects of the current financial situation.
Deaton claimed that the SEC’s concentration on the secondary market on exchanges and deployment of limited resources to Section 5 proceedings rather than addressing fraud in the crypto industry shows a misallocation of priorities. He argues that this strategy might potentially stifle creativity and stunt the expansion of the budding bitcoin sector.
Deaton also draws attention to the SEC’s opposition to retail investors taking part in the Ripple case as amici curiae (friends of the court). Deaton’s stance reinforces the idea that the regulatory body may put the interests of larger financial institutions ahead of those of individual investors by implying a reluctance to take into account the opinions of retail investors.
A significant issue raised by Deaton is the perception of a double standard in cryptocurrency regulation. He berates the SEC for not conversing with proactive organisations like Coinbase. At the same time, Sam Bankman-Fried, the former CEO of the defunct FTX exchange, met with SEC Chair Gary Gensler numerous times.
Concerns regarding the regulating body’s efficiency and fairness as well as the overarching framework for digital assets are raised by the disparate treatment. Due to the SEC’s varying treatment of diverse industry players, innovative startup growth may be hampered while potentially favouring more established firms.