Pro-XRP attorney John Deaton thinks that the US Securities and Exchange Commission’s (SEC) actions against the crypto business are motivated by a larger goal to maintain corporate capitalism rather than putting investor protection first.
Deaton questioned the SEC‘s moves against Coinbase and Ripple, pointing out the absence of accredited investor regulations, its strategy for regulating cryptocurrencies, and its stance regarding retail investors in the Ripple case. He asserted that rather than having a true capitalist system, the US operated inside a corporate capitalism framework.
Corporate capitalism
Deaton criticized the SEC for directing its limited resources toward Section 5 cases and for concentrating on the exchange secondary market rather than pursuing fraud in the cryptocurrency industry.
He made the case that this strategy might stifle innovation and slow the expansion of the budding Bitcoin sector. Additionally, he challenged the SEC’s opposition to retail investors serving as amici curiae in the Ripple case, which seemed to indicate a reluctance to take their opinions into account.
- SEC actions against crypto businesses prioritize corporate capitalism over investor protection.
- Deaton criticizes SEC’s focus on Section 5 cases and the secondary market.
- Deaton criticizes SEC’s Section 5 cases and secondary market focus.
Deaton questioned the SEC’s lack of communication with proactive organizations like Coinbase and SEC Chair Gary Gensler’s discussions with former CEO Sam Bankman-Fried in addition to the perceived double standard in cryptocurrency regulation.
The effectiveness and fairness of the regulating body, as well as the entire framework for digital assets, are called into question by this disparate treatment.
The SEC’s varying treatment of distinct industry players could obstruct the growth of creative startups while possibly favoring more seasoned organizations.
