The XRP Holder’s Lawyer Accuses SEC Chairman of ‘Gaslighting’
In the ongoing legal dispute between Coinbase Global Inc. and the U.S. Securities and Exchange Commission (SEC), the XRP holder’s lawyer, John Deaton, has accused the SEC’s top official, Gary Gensler, of ‘gaslighting’ the public and disagreed with his stance on cryptocurrencies.
SEC Rejects Coinbase’s Rulemaking Request
The development in Coinbase’s rulemaking request occurred when the SEC rejected the trading platform’s petition based on three reasons.
Reasons for Rejection
These reasons encompass applying current securities laws to cryptocurrencies, the SEC’s engagement with the crypto securities markets through rulemaking, and the significance of preserving the Commission’s discretion in establishing its rulemaking priorities.
Coinbase’s Request Relies on Crypto Distinctiveness
Despite these factors being apparent, John Deaton emphasized in response to the SEC Chair’s letter that Coinbase’s rulemaking request relies on the belief in the distinctiveness of the crypto ecosystem concerning asset volatility and the categorization of all assets as securities under current laws.
Contradiction in SEC Chairman’s Statements
According to Deaton, this stance directly opposes the SEC Chairman’s statements during his congressional testimony earlier this year. Deaton remembered that during the hearing, Gary Gensler asserted that crypto lies beyond the commission’s scope due to its unique nature, creating a regulatory gap.
Motives Behind SEC Chair’s Reversal
Deaton stated that Coinbase’s request relied on the SEC’s perspective, as evidenced by prior communications. The lawyer for XRP holders noted the SEC Chair’s complete reversal on the crypto issue, attributing it to political motives and backing from Senator Elizabeth Warren.
SEC’s Mixed Signals
The U.S. SEC has been sending different signals about its position in the cryptocurrency ecosystem, either through the SEC Chairman’s words or the commission’s actions in general.
SEC Declines to Appeal Grayscale Investments Case
Amid ongoing legal disputes with Coinbase and Binance over crypto securities, the regulatory body declined to appeal its defeat against Grayscale Investments. The case involves the company’s attempt to transform its Bitcoin Trust into an operational spot Exchange Traded Fund (ETF).
Hot Take: SEC’s Inconsistent Approach to Crypto Regulation
The ongoing legal dispute between Coinbase and the SEC highlights the inconsistency in the regulatory body’s approach to cryptocurrency regulation. The XRP holder’s lawyer accuses SEC Chairman Gary Gensler of ‘gaslighting’ the public by contradicting his previous statements on cryptocurrencies. Despite claiming that crypto lies beyond the commission’s scope due to its unique nature, Gensler rejected Coinbase’s rulemaking request based on applying current securities laws to cryptocurrencies. This reversal is attributed to political motives and backing from Senator Elizabeth Warren. The SEC’s mixed signals and refusal to appeal certain cases further add to the confusion surrounding its stance on crypto regulation.
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