Pro-XRP Lawyer Accuses SEC of Favoring Corporate Capitalism at the Expense of Investors

John Deaton, a lawyer known for his pro-XRP stance, has raised concerns about the United States Securities and Exchange Commission’s (SEC) actions against the cryptocurrency industry, suggesting that the regulatory body’s motives are driven by safeguarding corporate capitalism rather than protecting individual investors.

Deaton expressed his views on the SEC’s actions targeting Coinbase and Ripple, highlighting what he perceives as an assault on cryptocurrencies. He pointed out several aspects of concern, including the accredited investor rules, the SEC’s approach to crypto regulation, and its stance on retail investors in the Ripple case.

On Twitter, Deaton shared his conviction that the U.S. operates within a framework of corporate capitalism rather than a true capitalist system. He cited various elements of the current financial landscape to bolster his argument.

Deaton criticized the SEC’s allocation of limited resources to Section 5 cases and its focus on targeting the secondary market on exchanges instead of addressing fraud within the crypto space. He argued that this approach might hinder innovation and impede the growth of the emerging cryptocurrency industry.

The lawyer also highlighted the SEC’s opposition to retail investors participating as amici curiae (friends of the court) in the Ripple case, suggesting a reluctance to consider the views of individual investors. This has reinforced the perception that the regulatory body may prioritize the interests of larger financial institutions over those of retail investors.

Another major concern raised by Deaton is the perceived double standard in crypto regulation. He criticized the SEC for not engaging in dialogue with proactive entities like Coinbase while noting that SEC Chair Gary Gensler had multiple meetings with Sam Bankman-Fried, the former CEO of the now-collapsed FTX exchange.

The unequal treatment of industry players has raised questions about the SEC’s effectiveness, fairness, and the overall framework for digital assets. This differing approach could potentially stifle the growth of innovative startups while favoring more established entities.

Deaton’s assertions highlight the complexities and challenges surrounding crypto regulation, as the SEC navigates its role in an evolving financial landscape. As the industry continues to grow, the need for clear and equitable regulations becomes increasingly crucial for both investors and businesses operating in the cryptocurrency space.

For more news, find me on Twitter or subscribe to my YouTube channel.

What is your opinion on this issue? Leave me your comment below! I’m always interested in your opinion!

Leave a Reply

Your email address will not be published. Required fields are marked *

Recommended for you