John Deaton, who represents XRP holders, has proposed a new strategy for cryptocurrency companies struggling with the US SEC. In response to Ripple CTO David Schwartz’s recent discussion about dealing with the SEC, Deaton introduced a fourth option: urging companies not to engage or communicate directly with the SEC.
Deaton emphasized the importance of referring any SEC questions to legal counsel. Additionally, he recommended that if he receives a summons, he contact an attorney before taking action. More information – read on!
Struggling with a bigger problem
John Deaton pointed out that this perception means the SEC has been biased toward many companies in the cryptocurrency industry, even those seeking regulatory clarity. Two notable cases are Ripple Labs Inc. and Coinbase Global Inc.
Ripple has repeatedly sought guidance from the SEC regarding the classification of its XRP coin.
However, instead of offering clear rules, the commission filed a lawsuit against the company. Likewise, Coinbase found itself in a similar situation and subsequently filed a countersuit against the SEC for failing to provide necessary regulatory clarity in the US. Deaton is convinced that a head-on confrontation with the SEC is the most viable approach.
Coinbase has a better chance of winning if they stick to their decision like Ripple. In other cases, such as with ETH, he is certain that the SEC manipulated the rules to favor ETH over XRP in the first place.
Read more: XRP lawyer Deaton slams Gensler for lack of clarity on crypto laws and demands dismissal
The community responds
Although Deaton’s position has attracted attention, there are counterarguments. For example, Nerayoff questions whether lawyers and government agencies are colluding, and suggests that hiring an agency lawyer could be a solution. However, Deaton claims that ConsenSys made a strategic move, hiring Jay Clayton’s law firm to represent them, which may have influenced his actions as SEC chairman.
This, despite Clayton’s ties to the law firm, led to his voting for enforcement action against ConsenSys’ competitors, raising questions about the ethics of his decision-making. Clayton’s activities after leaving the SEC also raise concerns about his involvement in specific meetings and job choices.
Also Read: Will a Subpoena Be Issued to SEC Chairman Gary Gensler? Congressman Answers
What do you think of Deaton’s proposal?