Pro-XRP Attorney to SEC Chair: “Stop Protecting Us”

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The United States’ stance on cryptocurrency regulation has left many in the industry frustrated, with criticism focused on the lack of clear guidelines and the Securities and Exchange Commission’s (SEC) actions against digital currency firms. While other countries have adopted comprehensive frameworks, the US has yet to follow suit, with SEC Chair Gary Gensler drawing particular scrutiny. 

Gensler’s recent tweet sparked a response from Pro XRP Attorney John Deaton, whose rebuttal has caused a stir in the crypto community. Read on to discover more about this ongoing controversy and its potential impact on the future of crypto in the US.

Deaton Tells Chairman Gensler to Stop ‘Protecting’ the American Public 

Renowned cryptocurrency lawyer John Deaton recently took to Twitter to address SEC Chairman Gary Gensler, requesting that he cease protecting the American public on their behalf. The lawyer’s comments came in response to Gensler’s expression of gratitude to agency staff for their efforts in advancing the SEC’s mission.

This is in light of the various damaging regulatory measures taken by the SEC against numerous crypto enterprises recently, including the Ripple (XRP) blockchain, the Coinbase crypto exchange, Paxos, the company that produces the BUSD stablecoin, and Bittrex, which today filed for chapter 11 bankruptcy.

The SEC filed a lawsuit against Ripple Labs in December 2020, alleging that the company had conducted an unregistered security offering by selling XRP. The SEC believes that XRP is a security because it meets the definition of an investment contract under the Howey Test. Ripple and Deaton argue that XRP is a digital currency and not a security. The lawsuit is ongoing, with several court filings made over the past three years.

Deaton Challenges Legal Precedent On Investment Contract Cases

In a recent Twitter post, blockchain lawyer John Deaton challenged the legal precedent on investment contract cases, stating that no case in the past 76 years has considered the underlying asset security. 

Deaton arrived at this conclusion after conducting extensive research and examining the findings of legal experts like Lewis Cohen, a New York-based lawyer who authored the book “The Ineluctable Modality of Security Law: Why Fungible Crypto Assets Are Not Securities.” The lawyer’s remarks are significant in light of the ongoing lawsuit between the SEC and Ripple over the classification of XRP.