In the continuing legal battle between Coinbase and the U.S. Securities and Exchange Commission (SEC), John Deaton, a lawyer known for his support of XRP, has accused SEC Chair Gary Gensler of misleading the public and has expressed disagreement with his views on cryptocurrencies.
This accusation arose following the SEC’s dismissal of Coinbase’s petition for crypto rulemaking. The SEC rejected the petition on three grounds: the application of existing securities laws to cryptocurrencies, the SEC’s involvement in the crypto securities markets through rulemaking, and the importance of maintaining the commission’s autonomy in setting its rulemaking agenda.
Deaton, in a post on X (formerly known as Twitter), highlighted Gensler’s explanation for the SEC’s decision. Gensler stated, “there is NOTHING unique or new about cryptocurrencies,” countering Coinbase’s petition, which was based on the premise that the crypto ecosystem is distinct due to asset volatility and the classification of all assets as securities under current laws.
Deaton pointed out that Gensler’s current stance starkly contrasts with his statements during a congressional testimony earlier in 2023. At that time, Gensler had suggested that the unique nature of crypto placed it outside the SEC’s jurisdiction, indicating a regulatory void.
Deaton argued that Coinbase’s petition was grounded in the SEC’s previously indicated viewpoint, as reflected in past communications. He accused Gensler of a political-driven shift in his stance on crypto, influenced by support from Senator Elizabeth Warren.
The SEC’s approach to the cryptocurrency sector has been marked by inconsistency, as evidenced by varying messages from Gensler’s statements and the commission’s overall actions.
In the midst of ongoing legal confrontations with Coinbase and Binance, the SEC chose not to appeal its loss in a lawsuit against Grayscale Investments. This case revolved around Grayscale’s effort to convert its Grayscale Bitcoin Trust into a spot exchange-traded fund.
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