Ripple’s Attorney Condemns US Rep’s Idleness On SEC Subpoena
In a recent news report, John Deaton, a legal representative of Ripple Labs criticized a United States representative, Patrick McHenry for his failure to take prompt legal action against Gary Gensler and the United States of Security and Exchange Commission for being reluctant to honor the request of the United States Congress, asking them to answer some questions concerning the recent legal actions against crypto firms. Deaton suggests that Congress should file a subpoena against the commission instead.
Before now, reports have been flying around concerning several legal actions the US SEC has been taking against several crypto asset custodian platforms such as Ripple Labs, Binance.US, and Coinbase. News had been told of the commission suing crypto firms for breaching one or multiple securities laws. Reacting to their enforcement actions, the crypto community claimed the SEC has been going beyond its regulatory jurisdiction as they claimed the US Congress is the only authority that could issue such a lawsuit.
Deaton Criticizes McHenry’s Inactions
Furthermore, following several appeals from different crypto firms, the US Congress recently invited the SEC Chair, Gary Gensler, and the commission for questioning concerning their recent legal actions against various crypto industries. However, both Gensler and the SEC are yet to honor the congressional query filed against them.
And according to the report, John Deaton, who represents XRP investors, has called out the U.S. Representative, Patrick McHenry for refusing to take legal action against Gary Gensler and the SEC for being reluctant to comply with the congressional request. Deaton expressed his dissatisfaction with how McHenry is handling the situation against Gensler who had been accused of not complying with the US Congress’ query concerning the SEC’s recent regulatory actions on the crypto platform which was deemed extreme.
In addition, Deaton suggested that Congress should file a subpoena against Gensler and the SEC in order to force their operation and compliance with the US Congress request.
SEC Faces Potential Subpeona From The Congress
The attorney expressed his disappointment after Journalist Brian Costello made a controversial revelation where he accused the FSC chairman of condoning Gary Gensler to protect China in the American financial ecosystem consequently favoring the economy and military of China. The awareness has raised further questions and worries in the US financial community as more discussions are focused on the role and accountability of regulatory agencies such as the SEC.
According to the report, James Comer, the chairman of the Oversight and Accountability Committee for the House of Reps., reportedly commented on the recent development. Comer reportedly issued a letter to the SEC chair, Gensler, last month, where he pointed out the commission’s noncompliant stance. He also highlighted in the letter that Congress might be forced to file a subpoena against the SEC to force its compliance.
Furthermore, McHenry too had criticized the SEC’s reluctant behavior in September, as he pointed out that the SEC has refused to submit the requested documents especially those that contain information on the discussion between Gary Gensler and Sam Bankman-Fried, the former chief executive officer of the collapsed FTX exchange.
Crypto Community Awaits Further Development in the Case
McHenry’s speech portrays frustration and conflict of interest among policymakers concerning the lack of transparency and excessive legal actions of the SEC. Meanwhile, amid the growing tension, Gensler nor the SEC has yet to receive a subpoena from McHenry. The report showed that Deaton and other critics found the Reps. inaction to the situation amusing as they questioned the effectiveness of the US Congress in controlling financial agencies and ensuring transparency with them.
The current development showcased the brooding conflict between the US policymakers and financial regulatory bodies as evident in the SEC’s role in controlling and enforcing securities regulations. Moving on, the stakeholders and financial community involved in the XRP court case anticipate more actions as many call for regulatory bodies to increase their transparency and accountability status.
Meanwhile, the potential outcome of the lawsuit between Ripple Labs and the SEC remains much anticipated as the outcome would have a huge impact on the regulation of the crypto industry globally.
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