The US SEC Faces Criticism Over Alleged Breach of Protocol and Corruption
The US Securities and Exchange Commission (SEC) has received criticism from the US Government Accountability Office (GAO) and pro-XRP attorney John E. Deaton, highlighting a potential breach of protocol and corruption within the SEC.
US GAO Assesses SAB 121
The US GAO, an independent government agency, reviewed Staff Accounting Bulletin No. 121 (SAB 121), an anti-crypto accounting bulletin issued by the SEC. The GAO found that SAB 121 is a rule under the Congressional Review Act (CRA) and Administrative Procedure Act (APA), which the SEC did not comply with. This indicates that the SEC may have broken the law.
Deaton Alleges Corruption at the SEC
Pro-XRP lawyer John E. Deaton pointed out the SEC’s past actions during the Ripple lawsuit and emphasized that the agency has consistently failed to follow the law. He also claimed that the US GAO’s assessment provides further evidence of corruption within the SEC, stating that it now does more harm than good for investors.
SAB 121 Criticized as “Agency Statement”
Cody Carbone, Vice President of Policy at Digital Chamber, criticized the SEC for downplaying SAB 121 as merely an “agency statement.” He explained that according to the CRA, all agency rules must undergo a 60-day review phase by Congress. If a resolution of disapproval is passed, the rule is nullified and cannot be reissued without explicit congressional authorization.
SEC’s Next Move Awaited
The SEC’s next move is eagerly anticipated as it faces scrutiny over SAB 121. If the SEC does not withdraw the bulletin, it may face a lawsuit alleging a violation of the APA’s notice-and-comment requirement.
Hot Take: SEC Faces Accusations of Breach of Protocol and Corruption
The US SEC is under fire after an assessment by the US GAO revealed a potential breach of protocol in issuing Staff Accounting Bulletin No. 121 (SAB 121). Pro-XRP lawyer John E. Deaton has also accused the SEC of corruption, citing past actions during the Ripple lawsuit and the GAO’s assessment as evidence. The SEC now faces pressure to withdraw SAB 121 or potentially face legal action. This controversy raises concerns about the agency’s adherence to the law and its impact on investors. The SEC’s next steps will be closely watched to see how it responds to these allegations.
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