XRP Lawyer John Deaton Slams SEC’s Gary Gensler For ‘Infecting’ Entire Agency

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As an experienced financial analyst, I have closely followed the ongoing regulatory battles between various digital asset companies and the Securities and Exchange Commission (SEC), especially in relation to XRP and Ethereum. The recent accusations against SEC Chairman Gary Gensler by prominent XRP advocate and lawyer John Deaton are not only alarming but also reflective of a deeper issue with the SEC’s approach to digital asset regulation.

As a researcher investigating recent developments in the cryptocurrency industry, I’ve come across John Deaton’s fiery critique of the Securities and Exchange Commission (SEC) and its chairman, Gary Gensler. In his strongly-worded statement, Deaton, an XRP advocate and legal professional, has levied serious allegations against the SEC and its leader. He has publicly denounced their regulatory actions as dishonest and detrimental to the industry as a whole, going so far as to label Gensler’s leadership as infected with bad faith.

XRP Lawyer John Deaton Bashes SEC Chair Gary Gensler

Deaton voiced his displeasure on social media channels X by posting, “It’s high time we issue several subpoenas to Gary Gensler and the SEC, with all due respect.” For clarification, he mentioned his amicus brief in the Coinbase vs. SEC legal dispute.

I strongly recommend you take a look at the Amicus Brief I submitted in the Coinbase case. In it, I argue that Securities and Exchange Commission (SEC) chairman Gary Gensler has acted in bad faith, potentially tainting the entire agency. This assessment follows House Financial Services Committee Chairman Patrick McHenry’s recent comments on the ongoing Consensys-SEC legal dispute.

McHenry was clear and bold in stating, “Only a few months after a federal judge reprimanded SEC enforcement attorneys for deceiving the court, fresh data indicates that Chair Gensler may have misrepresented facts to Congress.” Furthermore, McHenry drew attention to Gensler’s appearance before the Financial Services Committee in April, where he declined to address queries concerning the SEC’s categorization of Ethereum.

As a crypto investor, I’ve noticed with concern the ongoing debate regarding the classification of Ether. The HFSC Chairman has raised valid concerns about the SEC Chair, Gensler, remaining silent on this issue despite previous statements suggesting a different stance. I believe him when he says, “Classifying Ether as a security goes against the SEC’s past declarations and my expectations from Chair Gensier. It’s another instance of the unpredictable and inconsistent way the SEC enforces digital asset regulations.”

This case aims to compel the SEC to recognize Ethereum for what it is – not a security. However, given the SEC’s previous position, this request could potentially put them in an awkward situation, possibly leading to a contradiction of their earlier statements.

Bill Morgan Offers Differing Take On Gensler Misleading Congress

Bill Morgan, another lawyer specializing in XRP matters, has disputed recent assertions about the Ethereum classification by the Securities and Exchange Commission (SEC). He clarified, “The SEC isn’t actually classifying Ethereum as a security. Instead, they’re examining whether specific transactions involving Ethereum should be considered securities transactions.”

In reference to Judge Torres’ decision in the SEC vs Ripple case, Morgan emphasized that a token itself does not equate to a security, but the manner in which it is offered or sold could constitute an investment contract. This contradicts statements made by Patrick McHenry and the Republican Party in the Financial Services sector, highlighting the importance of clear regulatory guidelines.

“The Republican Party’s stance on Financial Services regards Ethereum as a security, which goes against previous SEC statements and Chair Gensler’s views. We will persist in scrutinizing the SEC for its excessive regulation that hinders innovation, jeopardizes consumer protection, and potentially threatens our national security.”

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2024-05-01 10:20