- December 17, 2023
- Posted by: [email protected]
- Category:
An XRP advocate, John Deaton, has made significant claims against the United States Securities and Exchange Commission (SEC), accusing the regulatory body of utilizing ‘gaslighting’ methods in its ongoing legal battle with Coinbase. According to Deaton, the SEC’s present position in the Coinbase rulemaking debate contradicts statements made by SEC Chair Gary Gensler during congressional testimony earlier in 2023, raising concerns about the regulatory body’s consistency and transparency.
The disagreement between Coinbase and the SEC centers on the rejection of Coinbase’s petition for crypto rulemaking, grounded on three main reasons. Firstly, the SEC argues the justification for applying existing securities laws to cryptocurrencies. Secondly, the SEC defends its involvement in the crypto securities markets through rulemaking. Thirdly, the commission underscores the significance of maintaining its discretion in setting rulemaking priorities.
Deaton, in a post on the platform X (formerly Twitter), highlights Gensler’s public explanation of the SEC’s decision. Gensler asserted that “there is NOTHING unique or new about cryptocurrencies” and criticized Coinbase’s rulemaking request for depending on the belief in the distinctiveness of the crypto ecosystem, particularly concerning asset volatility and the classification of all assets as securities under current laws.
The pro-XRP lawyer points out an apparent contradiction in Gensler’s stance, observing that it directly contradicts the SEC chair’s earlier statements in 2023. Deaton recalls Gensler’s previous claim that crypto falls outside the commission’s jurisdiction due to its unique nature, implying the existence of a regulatory gap.
Deaton further alleges that Coinbase’s rulemaking request aligned with the SEC’s prior communications, underscoring Gensler’s complete reversal on the crypto issue. Deaton attributes this shift to political motives and support from Senator Elizabeth Warren.
The SEC’s approach to the cryptocurrency ecosystem seems inconsistent, with conflicting signals emerging from Gensler’s statements and the commission’s overall actions. Notably, in the midst of legal disputes with Coinbase and Binance, the regulatory body opted not to appeal its loss against Grayscale Investments. This case revolved around Grayscale’s endeavor to transform its Grayscale Bitcoin Trust into a spot exchange-traded fund, shedding light on the intricate dynamics and evolving regulatory landscape surrounding cryptocurrencies.
