Cryptocurrency lawyer, John E. Deaton is firing back at SEC chair Gary Gensler after the regulator rejected Coinbase’s proposal for crypto-specific rules.
Deaton took Gensler to task on social media, accusing him of “gaslighting” the public. According to Deaton, Gensler’s stance contradicts his previous testimony that acknowledged crypto’s uniqueness and the lack of tailored regulations.
The Coinbase decision prompted an immediate lawsuit, with the exchange alleging the rejection was arbitrary. The SEC argues current securities laws adequately govern crypto markets.
Deaton claims the regulator is weaponizing its independence instead of creating sensible crypto policy. He also called out senators critical of crypto, suggesting conveniently timed comments from JPMorgan’s Jamie Dimon and Senator Elizabeth Warren.
The face-off spotlights the ongoing conflict around whether crypto necessitates specialized regulations. As the SEC ramps up enforcement actions, exchanges like Coinbase insist legal clarity is desperately needed to support innovation.
With stakes high on both sides, the war of words seems poised to intensify alongside unfolding legal battles.
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