Crypto lawyer and XRP supporter John Deaton says the US Securities and Exchange Commission (SEC) is moving in the wrong regulatory direction at the expense of retail investors.
the barrel tells are 263,500 Twitter followers that SEC officials have had more than enough time to create more regulatory clarity surrounding cryptocurrencies.
He highlights how years ago former SEC officials issued statements that made it appear that XRP and similar digital assets would not be considered securities. But that question now remains the subject of debate and litigation.
Say dead,
“Also in 2019, former [SEC] Chair [Jay] Clayton publicly agreed with Hinman’s speech, stating that the token itself is NOT a security and that a token can initially start or be issued as a security, but later transform so that subsequent sales of the token no longer meet the Howey test.
But now we are FOUR years later and we are regressing in terms of regulatory clarity. And for you crypto critics who say that Hinman and Clayton’s comments are irrelevant because their statements were just personal opinions, I’m saying nonsense (actually I’m saying something else, but I’m being polite).
In the now-famous 2018 speech, Hinman, then an SEC official, said he believes that both Bitcoin (BTC) and Ethereum (ETH) are not securities.
Deton too say the lack of US regulatory clarity, such as if SEC Chairman Gary Gensler failed to answer if his agency considered ETH a security, creates market instability and therefore hurts retail investors, despite the SEC’s stated mission.
“But one thing you CANNOT credibly argue is that the SEC protects investors even remotely. Not only has it failed miserably to protect investors, it has certainly failed to maintain “fair, orderly and efficient markets” or “facilitate capital formation.”
Absolute disgrace!”
In 2020, the SEC sued Ripple Labs, the issuer of payment token XRP, for illegally selling unregistered securities. The lawsuit is pending, but Ripple expects summary proceedings this year.
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