Pro-Ripple lawyer John E. Deaton believes the U.S. Securities and Exchange Commission (SEC) will lose as it ramps up its regulatory crackdown against the crypto industry.
Deaton reacted to a tweet by former SEC enforcement official John Reed Stark, who indicated that an “SEC crypto-exchange crackdown has begun, and the SEC is apparently taking no prisoners. Four recent SEC events indicate that crypto-exchanges, platforms, and so on will have to stop doing business in the US, at least in their current form.”
In Ripple, the Judge said the SEC “lacks faithful allegiance to the law.” In LBRY, the Judge shamed the SEC over the lack of clarity. In Grayscale, the Court said the SEC’s arguments made no sense. In Voyager, the Judge BLASTED the SEC’s ethics and behavior.
The SEC will lose. https://t.co/CYPCxw5hlS
— John E Deaton (@JohnEDeaton1) April 17, 2023
In the wake of the regulatory crackdown on the cryptocurrency industry, observers have often indicated that this might stifle and drive innovation out of the U.S. Adding to this fact, Deaton believes the SEC will lose, as he cites examples of how the SEC’s arguments were found to be completely without merit.
In the Ripple lawsuit, he says that a federal judge said the SEC lacked faithful allegiance to the law. In the LBRY lawsuit, Deaton stated that the judge shamed the SEC over the lack of clarity. In Grayscale, Deaton stated that the court said the SEC’s arguments made no sense.
In the Voyager case, he added that the ruling judge rebuked the SEC’s ethics and behavior. Deaton, in a new tweet, mentions the courts as the great equalizer, referring to these examples.
SEC charges Bittrex
In a press release dated April 17, the Securities and Exchange Commission (SEC) announced it has charged crypto asset trading platform Bittrex and its co-founder and former CEO William Shihara with operating an unregistered national securities exchange, broker and clearing agency.
The SEC also charged Bittrex’s foreign affiliate, Bittrex Global GmbH, for failing to register as a national securities exchange.
“Today’s action, yet again, makes plain that the crypto markets suffer from a lack of regulatory compliance, not a lack of regulatory clarity,” said SEC Chair Gary Gensler in the press release.