Pro-XRP Lawyer Criticizes SEC’s Delay of BlackRock Bitcoin ETF, Alleges Favoritism towards Incumbent Players

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Noted pro-XRP lawyer, John Deaton, has taken to social media to voice his strong dissent against the recent decision by the U.S. Securities and Exchange Commission (SEC) to delay the approval of a Bitcoin exchange-traded fund (ETF) by global asset manager BlackRock. Deaton, known for his vocal support of XRP and cryptocurrencies, contends that the regulatory approach of linking retail access to institutional involvement is, in reality, aimed at protecting incumbent entities rather than safeguarding investors.

Sharing an interview featuring Jay Clayton, the former SEC Chair, on his Twitter account, Deaton highlighted what he views as a concerted effort to favor established players within the cryptocurrency industry. He asserted that regulators have come to terms with the fact that they cannot eliminate cryptocurrencies entirely, leading them to seek ways to suppress cryptocurrency prices to benefit these incumbent entities.

Deaton stated, “Regulators are friends of the incumbents, and they have all finally accepted that they can’t kill crypto, but will crush its price so that those same incumbent friends can get a larger slice.”

Clayton, in a recent appearance on CNBC’s Squawk Box on September 1, expressed his strong belief in the imminent approval of a spot ETF for Bitcoin, likening it to a crypto investment fund.

Clayton remarked, “It is clear that Bitcoin is not a security. It is something that retail investors want access to, and importantly, some of our most trusted providers want to provide this product to the retail public. An approval is inevitable.”

In a significant development for the crypto world, on August 29, 2023, a U.S. court ruled in favor of Grayscale, a prominent cryptocurrency company. This ruling paves the way for Grayscale to transform its Bitcoin Trust into a standard Bitcoin ETF, a development that has garnered attention within the crypto space. ETF expert Eric Balchunas, as reported by Bloomberg, suggests that there is now a 75% chance of approval for this Bitcoin ETF.

The ongoing debate surrounding the SEC’s approach to cryptocurrency regulation, as voiced by figures like John Deaton, underscores the complex and evolving relationship between regulators, institutional players, and the future of the cryptocurrency market. As the industry continues to mature, it remains to be seen how regulatory decisions will impact the crypto market and its participants.