Stop Protecting American Public, Pro-XRP Attorney Tells SEC Chair

The pro-XRP Attorney and crypto lawyer John Deaton has told SEC Chair Gary Gensler to retreat his regulatory actions. The attorney demands that the commission stop protecting Americans by lashing on crypto companies.

The United States has increased the tension in its crypto industry through unclear regulatory measures. Crypto regulators like the Securities and Exchange Commission (SEC) also affect crypto firms with multiple enforcement actions. 

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In a statement via Twitter in response to Gensler’s post appreciating SEC’s staff for upholding the commission’s mission, Attorney Deaton asked SEC boss Gensler to stop protecting the American public.

On behalf of the American public we ask you to please stop protecting us.

— John E Deaton (@JohnEDeaton1) May 8, 2023

The SEC has enacted enforcement actions against several crypto entities through its forceful regulatory measures. Some include the Ripple (XRP) blockchain, Paxos (Issuer of BUSD stablecoin), Bittrex, Coinbase, and others.

In December 2020, the SEC sued Ripple Labs and some of its executives over the sale of XRP tokens under the Howey Test, stating that the asset passed the definition of an investment contract.

Attorney Deaton maintained that XRP is not a security but a digital currency, and the lawsuit has been taking several turns and is still ongoing.

The activity of the US SEC on crypto firms in the US has evoked a lot of reactions, especially from top firms such as Coinbase. However,  the commission has maintained that its actions are measures to protect Americans.

Moreover, in a video, last month, the SEC chair maintained that intermediaries for investment contracts should comply with securities laws and register fully with the SEC. 

He also said that the law only cares about “what something is and not what you call it” As such, digital asset investment firms that list securities must comply with the investor protection obligations like other firms.

Crypto lawyer John Deaton mentioned earlier that the SEC is pushing legal boundaries by claiming that Ripple violated securities laws.

According to a Bloomberg Law publication, Deaton stated that the SEC’s allegation against XRP is beyond legal contemplation and court rulings on securities.

The lawyer mentioned that the US Supreme Court in 1946 defined security in its ruling on SEC v. Howey case. So, the ruling could not account for the complex digital assets with encrypted computer code after almost a century.

Featured image from Thinking Crypto and chart from Tradingview