The post Deaton Slams SEC: Calls for Regulatory Overhaul Amid Syndicated Loan Controversy appeared first on Coinpedia Fintech News
Attorney John Deaton, the founder of Crypto Law, has consistently voiced his criticism of the US Securities and Exchange Commission (SEC). The pro-XRP lawyer has repeatedly expressed his dissatisfaction with the SEC’s lack of a transparent regulatory framework. Deaton has been particularly critical of the SEC’s handling of the XRP case.
In a recent development, Deaton has slammed the SEC for its inability to provide a definitive opinion on whether syndicated loans are securities.
What are Syndicated Loans?
A syndicated loan, alternatively known as a syndicated bank facility, refers to a form of financing where a group of lenders, called a syndicate, collaboratively provides funds to a single borrower. This borrower could be a corporation, a significant project, or even a government entity. The loan may encompass a predetermined sum of money, a line of credit, or a mixture of both.
Deaton Criticizes SEC’s Indecisiveness and Calls for Agency Overhaul
Deaton has criticized the SEC after the commission was unable to offer a clear opinion on whether syndicated loans should be classified as securities. The SEC’s indecisiveness resulted from multiple requests for more time to present its position to the court.
In his tweet, Deaton asserts that the SEC is a ‘broken institution’, which he believes is an indisputable fact. According to him, the SEC’s refusal to provide any substantial guidance not only to market participants but also to appellate courts is proof of its desire to maintain an unclear and ambiguous regulatory environment. Deaton further argues that this approach enables the SEC to potentially prosecute anyone or anything in the future. As a result, he believes that a comprehensive overhaul of the agency is necessary.
Deaton further highlighted that it should be remembered that the Office of General Counsel advised Hinman against declaring Ethereum (ETH) as a non-security. This advice was not based on the belief that ETH was actually security or due to concerns about unfair favoritism, but rather because such a declaration might restrict the SEC’s ability to take action against ETH in the future. Deaton thinks this attitude is disgraceful.
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