John Deaton believes that the issue of unequal treatment raises concerns about the effectiveness and fairness of the regulatory body, and questions the general digital asset framework.
Pro-XRP lawyer John Deaton has said that the actions taken by the United States Securities and Exchange Commission (SEC) against the crypto sector are directed by a broader purpose of protecting corporate capitalism rather than protecting investors.
Deaton underscored what he perceives as aggressive measures against cryptocurrencies, specifically concerning the SEC’s initiatives against Coinbase and Ripple. In his comments, he addressed many aspects such as accredited investor rules, the SEC’s approach to regulating cryptocurrencies, and its attitude towards retail investors in the Ripple case.
On X (Twitter), Deaton shares his viewpoint that the United States functions within the confines of corporate capitalism, as opposed to a genuine capitalist system. He emphasizes various aspects of the current financial landscape to strengthen his argument.
Deaton said that the SEC’s allocation of limited resources to Section 5 cases and its focus on targeting the secondary market rather than addressing fraud in the crypto space shows misplaced priorities. He insisted that this approach could potentially stifle innovation and hinder the growth of the emerging crypto sector.
Moreover, Deaton underscores the SEC’s resistance to allowing retail investors to join as amici curiae (friends of the court) in the Ripple lawsuit. With this situation, Deaton reinforces the impression that the regulatory body is reluctant to consider the views of individual investors and prioritizes the interests of larger financial institutions over those of individual investors.
Deaton emphasizes that the perceived double standard in crypto regulation is a major cause for concern. He rebukes the SEC for its lack of interaction with forward-thinking entities such as Coinbase. He also points out that SEC Chairman Gary Gensler had multiple meetings with Sam Bankman-Fried, the former CEO of the failing FTX exchange.
Unequal treatment raises concerns about the effectiveness and fairness of the regulatory body, and about the general digital asset framework. The SEC’s different approaches to various industry players can potentially hamper innovative startup growth while possibly advantaging more established assets.