In a recent statement, prominent lawyer John Deaton accused the United States Securities and Exchange Commission (SEC) of protecting corporate capitalism rather than safeguarding investors in the crypto industry.
He argues that the SEC’s actions against Coinbase and Ripple show a misplaced focus, hindering innovation and growth in the cryptocurrency space.
Deaton highlights the SEC’s limited resources allocated to Section 5 cases and its targeting of exchanges’ secondary markets, neglecting to address fraud within the crypto industry. This one-sided approach could stifle the development of the burgeoning cryptocurrency sector.
Moreover, Deaton criticizes the SEC’s reluctance to consider the views of retail investors in the Ripple case, signaling a preference for larger financial institutions over individual investors.
A major concern raised by Deaton centers on the perceived double standard in crypto regulation. He questions the SEC’s lack of dialogue with proactive entities like Coinbase while holding meetings with figures from collapsed exchanges, implying an unequal treatment that could favor established players over innovative startups.
Also Read: Hester Pierce Opposes SEC’s Crypto Warning to Accountants
These developments cast doubts on the SEC’s effectiveness and fairness in regulating digital assets, potentially impacting the overall framework for cryptocurrencies.
