In a recent critique of the SEC, John Deaton, a prominent pro-crypto lawyer and legal representative of XRP holders, voiced his concerns about the agency's functionality and integrity. Deaton took to Twitter, stating that he believes the commission, as an institution, is indefensible and a broken agency that no longer upholds its core mission.
Tomiwabold OlajideDeaton's criticism stems from what he perceives as the SEC's mishandling of the cryptocurrency market. Despite the history and evolution of the cryptocurrency market, Deaton lamented the SEC's reliance on cases from decades ago in its briefs, suggesting that this approach fails to provide adequate guidance and clarity to the market.
In his tirade, Deaton also referred to significant events that should have influenced the SEC's perspective on digital assets. In 2018, the agency made the speech of William Hinman public, which outlined the SEC's stance on cryptocurrencies. In 2019, the regulator issued a framework for "investment contracts," stating that a virtual currency used for payments and as a fiat substitute was unlikely to be classified as a security under the Howey test.
Deaton further emphasized that XRP had already been recognized as a virtual currency by multiple governmental bodies. This recognition, coupled with statements made by former SEC chairman Clayton, who agreed with Hinman's point of view, raises doubts about the regulator's recent actions regarding XRP, points out Deaton.
Gamza KhanzadaevThe SEC's role in regulating the ever-expanding crypto industry is critical. As such, Deaton's rhetoric highlights the need for a comprehensive evaluation of the agency's practices and policies to ensure they align with the dynamic nature of the digital asset landscape. With calls for reform growing louder, the debate over the SEC's efficacy and its impact on the crypto market is likely to intensify in the coming months.
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