John Deaton, representing XRP holders, has proposed a novel strategy for cryptocurrency companies grappling with the U.S. SEC. In response to Ripple CTO David Schwartz’s recent discussion on handling the SEC, Deaton introduced a fourth option: urging firms to avoid engaging with or communicating directly with the SEC.
Deaton stressed the importance of redirecting any inquiries from the SEC to legal counsel. Furthermore, if served with a subpoena, he recommended contacting an attorney before taking any action. Learn more – read on!
Grappling With a Larger Issue
John Deaton pointed out that this perception that the SEC has been partial toward many firms in the cryptocurrency industry, even those seeking regulatory clarity. Two notable cases are Ripple Labs Inc. and Coinbase Global Inc.
Ripple has repeatedly sought guidance from the SEC regarding the classification of its XRP coin.
However, instead of offering clear regulations, the commission filed a lawsuit against the company. Similarly, Coinbase found itself in a similar predicament and subsequently filed a counter-suit against the SEC for failing to provide the necessary regulatory clarity in the U.S. Deaton is adamant that confronting the SEC head-on is the most viable approach.
Coinbase has a bigger chance to win if they stand by their decision like Ripple. In other cases, like ETH, he is sure that the SEC has manipulated rules to favor ETH initially over XRP.
Read More: XRP Lawyer Deaton Slams Gensler for Lack of Clarity on Crypto Laws, Demands Resignation
The Community Reacts
While Deaton’s viewpoint has garnered attention, there are counterarguments. For instance, Nerayoff questions whether lawyers and government agencies collude, suggesting that hiring the agency’s lawyer might be a solution. However, Deaton alleges a strategic move by ConsenSys, which retained Jay Clayton’s law firm to represent them, potentially influencing his actions as SEC Chair.
This, despite Clayton’s ties to the law firm, led to his vote for enforcement actions against ConsenSys’ competitors, raising questions about the ethics of his decision-making. Clayton’s activities after leaving the SEC also raise concerns about his involvement in specific meetings and job choices.
Also Read: Will a Subpoena be Issued to SEC Chair Gary Gensler? Congressman Answers
What do you make of Deaton’s proposal?
