Pro-XRP Lawyer Calls for End to US SEC Crypto Wars

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Lawyer John E. Deaton, an advocate for XRP, has called for an end to the ongoing “cryptocurrency disputes” instigated by the U.S. Securities and Exchange Commission (SEC). His plea comes in response to a string of significant legal conflicts involving well-known entities like Ripple, LBRY, Coinbase, among others. Deaton asserts that these confrontations have drained considerable resources without effectively addressing the issue of material deception.

John Deaton Urges US Regulators to Drop Ongoing Crypto Cases

John Deaton, a well-known attorney who often advocates for Ripple and other cryptocurrency businesses, publicly expressed his dismay over the continuous regulatory interventions by the U.S. Securities and Exchange Commission (SEC). Deaton pointed out instances where crypto companies have encountered legal difficulties and financial strain, even when not implicated in fraud. He contends that these situations have depleted company funds and had a detrimental effect on the overall cryptocurrency sector.

John Deaton highlighted numerous situations where businesses faced significant financial setbacks as a result of lawsuits with the Securities and Exchange Commission. Specifically, he referred to Ripple, which spent more than $150 million on legal costs in a case that did not implicate any fraud charges.

In this scenario, Ripple’s business functions have been impacted, altering their collaborations and commercial dealings, which may have repercussions for those who own XRP (Ripple’s digital currency).

The Pro-XRP Lawyer added,

As an analyst who’s had the privilege of submitting amicus briefs in the Ripple, LBRY, and Coinbase cases on behalf of users, developers, investors, and content providers, I can’t help but ponder over the staggering amount of time, effort, resources, and capital that have been squandered during the past four years.

John Deaton has urged the SEC to show leniency in its actions, but the regulatory body persists with its stringent supervision. Lately, the US SEC filed a lawsuit against Digital Currency Group, accusing them of not disclosing risks associated with Three Arrows Capital. This led to a $38 million settlement.

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John Deaton has asked for the SEC to tone down its aggressive actions, but the agency remains firm in its watchful stance. Most recently, the US SEC took Digital Currency Group to court for not disclosing risks related to Three Arrows Capital, resulting in a $38 million settlement.

Impact on Companies and Innovation

To provide additional insight into the effects of U.S. Securities and Exchange Commission (SEC) actions, Deaton pointed out the example of LBRY, a platform that was closed down by the SEC without any allegations of fraud. This shutdown resulted in job losses and financial difficulties for its founder, Jeremy Kauffman.

John Deaton emphasized,

“No fraudulent activities were reported or suspected. The LBRY platform had an engaged user and provider community. Unfortunately, some LBRY employees lost their jobs. A U.S.-based entrepreneur, Jeremy Kauffman, incurred significant financial losses due to legal expenses.

As an analyst, I’ve observed that even after Kraken agreed to pay a $30 million fine, the platform continued to encounter lawsuits thereafter, indicating a persistent pattern of rigorous regulatory action. This series of legal maneuvers, as suggested by the Pro-XRP Lawyer, potentially stifles innovation and hinders the expansion of the cryptocurrency industry.

Reevaluation of SEC’s Approach To Crypto Regulations

John Deaton’s pleas express an increasing worry among the cryptocurrency community regarding the U.S. Securities and Exchange Commission’s handling of cryptocurrency regulations. As a legal authority, he proposes a fair strategy that would foster growth in the crypto industry while maintaining the honesty and effectiveness of regulatory actions.

Furthermore, other key figures in the cryptocurrency sector have shared their views following Gary Gensler’s departure from the Securities and Exchange Commission. Notably, Ripple’s Chief Legal Officer, Stuart Alderoty, recently made a jest about Gensler leaving, which could indicate a significant change in the SEC’s approach towards crypto regulation enforcement.

In the face of criticism from individuals such as John Deaton, the departing Chair of the Securities and Exchange Commission, Gary Gensler, maintains the necessity of stringent regulation within the cryptocurrency market. He underscores the significance of enforcing actions to shield investors from potential risks associated with the crypto sector.

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2025-01-19 06:30