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Lawyer John Deaton, who supports XRP, uses the X platform to criticize the U.S. Securities and Exchange Commission (SEC) for what he terms as a "pure money grab" in the recent speech against cryptocurrencies. In the meantime, Deaton's audacious remarks cast doubt on the SEC's intentions by accusing it of lacking openness and drawing attention to a larger problem of corruption in the regulatory environment.
Especially, the post illuminates a divisive period in which conflicts of interest and irregularities appear to be commonplace.
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Lawyer for XRP John Deaton Crises SEC
John Deaton expressed his strong suspicion about the SEC's activities in a recent article on the X platform. In his post, he stressed that if the lawsuit had been against Ethereum, Consensys, Vitalik Buterin, Joseph Lubin, the founder of Consensys, and Ethereum co-founder, he would have sued the SEC in the same manner that it did for Ripple, "alleging ETH was a security."
He refers to the current era as the “Corruption Era,” pointing to examples of purported corruption involving well-known political personalities to illustrate a larger backdrop. Furthermore, according to John Deaton, this atmosphere allows regulators to give advantageous benefits to those who have influence over them without facing much criticism from the mainstream media.
Deaton said the Director of Corporation Finance would not think twice to grant regulatory benefits to his backers, allowing them to participate in the speech and go on to work for them. He contends that this is a sign of a time when there was a flagrant disregard for conflicts of interest.
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Hearings before the SEC and the Exclusion of the "Sufficiently Decentralized" Test
Resonant with John Deaton's thoughts is a post by prominent crypto lawyer MetaLawMan. The article raises concerns about the SEC's deliberate omissions during the hearings on Coinbase and Binance, particularly the fact that Bill Hinman's invention of the "sufficiently decentralized" test was not brought up. Notably, the post raises questions about the SEC's handling of recommendations pertaining to the classification of cryptocurrency tokens and suggests a lack of openness, according to MetaLawMan.
In an attempt to cast doubt on the impartiality of its regulatory approach, the SEC purposefully omitted any mention of Bill Hinman's "sufficiently decentralized" criteria while praising the advantages of its guidance on determining whether cryptocurrency tokens are securities during the hearings.
Deaton's vociferous critique and MetaLawMan's astute insights highlight the growing mistrust surrounding the SEC's crypto-related regulatory actions. Openness, equity, and uniform rules are becoming more and more necessary as the cryptocurrency ecosystem struggles with changing regulations. The story that is developing poses important queries regarding the responsibility and function of regulatory agencies in determining the direction of the bitcoin market.