SEC Accused Of Gaslighting In Coinbase Dispute

It has been just revealed the fact that SEC has been accused of gaslighting in the Coinbase dispute. Check out the latest reports about this below.

Pro-XRP lawyer John Deaton has accused the United States Securities and Exchange Commission (SEC) of contradicting its own statements on cryptocurrencies.

The accusation came during the ongoing legal dispute between Coinbase and the SEC.

The SEC rejected Coinbase’s crypto rulemaking petition citing reasons such as applying current securities laws to cryptocurrencies, the significance of preserving the commission’s discretion in establishing its rulemaking priorities and the SEC’s engagement with the crypto securities markets through rulemaking.

John Deaton disagreed with SEC Chair Gary Gensler’s stance on cryptocurrencies and accused him of gaslighting the public.

This accusation was made as Deaton believed that the SEC’s stance in the Coinbase rulemaking dispute directly opposed the SEC Chair’s statements during his congressional testimony earlier in 2023.

In a post on X (formerly Twitter), Deaton emphasized Gensler’s statement outlining the reasons for the SEC’s decision, where the SEC chair states, “there is NOTHING unique or new about cryptocurrencies.”

Gensler stated that Coinbase has requested new rules that rely on the idea that the cryptocurrency market is distinct from other markets due to its asset volatility.

Coinbase believes that all crypto assets should not be categorized as securities under current laws.

However, Deaton disagrees with this stance and claims that it directly contradicts the SEC chair’s statements during his congressional testimony earlier this year.

Gensler had previously stated that the unique nature of crypto assets meant that they were beyond the commission’s scope, resulting in a regulatory gap.

Deaton believes that Coinbase’s request is based on the SEC’s perspective, as evidenced by prior communications.

He notes that Gensler’s change of stance on the crypto issue may be due to political motives and backing from Senator Elizabeth Warren.

The approach of the SEC towards the cryptocurrency ecosystem has been unclear, with mixed signals coming from both the words of its chairperson, Gary Gensler, and the commission’s actions in general.

Recently, the regulatory body decided not to appeal its loss against Grayscale Investments in a legal battle that involved the company’s attempt to convert its Grayscale Bitcoin Trust into a spot exchange-traded fund. This comes amidst ongoing legal disputes with major crypto exchanges, Coinbase and Binance.