- Pro-XRP lawyer John E. Deaton criticizes the SEC for alleged favoritism towards Ethereum and inconsistency in cryptocurrency regulation.
- Deaton’s comments follow colleague James Murphy’s observation about the SEC’s omission of Bill Hinman’s ‘sufficiently decentralized’ test.
The SEC’s Cryptocurrency Regulation under Scrutiny
Renowned pro-XRP lawyer John E. Deaton has unleashed a scathing critique of the U.S. Securities and Exchange Commission (SEC), challenging its approach to regulating cryptocurrencies, particularly Ethereum. This critique follows a commentary by colleague James Murphy on the SEC’s recent hearings involving Coinbase and Binance.
Ethereum’s Alleged ‘Free Pass’
Deaton, voicing his opinions via social media, did not hold back in his analysis of the SEC’s treatment of Ethereum. He criticized the SEC for what he perceives as a ‘money grab’ in its handling of Ethereum, particularly in the context of the Bill Hinman speech, which introduced the ‘sufficiently decentralized’ test for cryptocurrencies. This test, according to Deaton, was conveniently omitted in the SEC’s narrative.
Beyond Ethereum’s Technological Merits
Deaton emphasized that his critique transcends Ethereum’s technological aspects or ecosystem. He argued that if the SEC had pursued legal action against Ethereum, similar to its case against Ripple, he would have taken the same legal stance in defense of Ethereum.
The “Corruption Era” in Governance
Deaton expanded his critique to what he describes as the “Corruption Era,” characterized by a systemic disregard for ethical standards and conflicts of interest across various high-profile cases. He drew parallels to actions by members of Congress, Nancy Pelosi, Hunter Biden, Donald Trump, Hillary Clinton, and Dr. Scott Gottlieb, suggesting a pervasive pattern of leveraging power for personal gain or special interests.
The Ripple Effect on XRP
As this legal and regulatory debate unfolds, the ripple effect is evident in the cryptocurrency market, particularly on XRP. At the time of writing, XRP‘s value had dropped to $0.52335, reflecting a 16% decline over the last 12 days.
A Call for Fair and Consistent Regulation
Deaton’s critique underscores the need for a fair and consistent approach to cryptocurrency regulation. His comments highlight significant concerns about the SEC’s impartiality and thoroughness in its oversight, raising crucial questions about the future of digital asset regulation. As the cryptocurrency landscape continues to evolve, the resolution of these issues will be critical in shaping a balanced and equitable regulatory framework.