Pro-XRP Attorney Claims SEC Chair Gary Gensler Is Venturing Into Uncharted Waters With Ripple Lawsuit
Attorney, John Deaton has said that U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler is overreaching in his accusations that Ripple has broken securities regulations.
Deaton argues in a recent Bloomberg legislation opinion post that the SEC’s claim that XRP is security goes beyond the scope of existing securities legislation and associated judicial precedents. In its 1946 ruling SEC v. Howey, the United States Supreme Court defined securities in great detail.
Those judges had no idea how complicated digital trade over secret lines of code would become nearly a century later. This exceeds the scope of the 1933 Securities Act and more than 250 securities-related rulings from the federal appellate and Supreme Courts.
While the pro-XRP attorney acknowledges the benefits of a regulatory framework, he warns against the potentially disastrous legal and economic consequences of Gensler’s proposal that cryptocurrencies be treated as securities.
“The Securities and Exchange Commission, led by Chairman Gary Gensler, has its own vision of how cryptocurrencies should be regulated today, but it bears little similarity to that ruling, and it is venturing into the risky legal ground in court.
I support strict compliance with the law for everyone’s safety. However, the SEC is using crypto’s legal laws to rewrite the rules of what defines a common company and an investment contract in the United States.”