SEC Gives Priority To Corporate Capitalism Instead Of Investors Says XRP Lawyer
John Deaton, an XRP-proponent attorney, has stated that the operations carried out by the US Securities and Exchange Commission to confront the crypto market are led by a wider motive. As per the lawyer, the purpose of doing these actions is to protect corporate capitalism. In addition to this, the attorney mentioned that the securities regulator of the United States is more responsive to capitalism in the corporate sector than investor protection.
SEC Has a Corporate Capitalism-Centered Approach that Neglects Investors, Says John Deaton
Deaton pointed out that this is the SEC’s attempt to suffocate the crypto sector, specifically concerning the operations of the securities regulator while targeting the prominent crypto exchanges Ripple and Coinbase. In this respect, Deaton discussed many factors, taking into account the rules concerning accredited investors, the approach of the regulatory agency to regulate crypto assets, and their status concerning the retail investors in the case of Ripple.
Apart from that, Deaton disclosed his point of view that the United States follows an agenda promoting corporate capitalism instead of an honest capitalist system. He pointed out diverse aspects of the current financial ecosystem to support his argument. As per the attorney, the SEC allocates restricted resources for Section 5 cases.
He also referred to the agency’s attention on the secondary market on crypto exchanges rather than focusing on fraud increasing within the industry. Deaton added that these are the things that signify a misplacement of the SEC’s priorities. According to the lawyer, such an approach could likely pose a hindrance in the way of innovation and advancement of the burgeoning crypto market.
Apart from that, the lawyer also revealed the SEC’s hostile approach toward those retail investors who take part in the Ripple lawsuit as amici curiae (court’s friends). Keeping this in view, Deaton brought to the front a reluctance to take into account the retail investors’ viewpoints. In this way, he further solidified the observation that the regulator may give more weightage to the interests of the bigger financial entities as opposed to the individual investors.
SEC’s Double Standard Concerning Crypto Regulation Highlights Huge Apprehensions, the Lawyer Asserts
While moving on, the attorney also pointed toward a huge apprehension regarding a seeming double standard regarding the regulation of crypto assets. He also condemned the SEC because of not initiating discussions with proactive platforms such as Coinbase. Simultaneously, Gary Gensler (the chairman of the SEC) had several meetings with the now-defunct crypto exchange FTX’s former chief executive officer (CEO) Sam Bankman-Fried.
The unequal treatment paves the way for many apprehensions regarding the fairness and effectiveness of the regulatory agency and its overall agenda concerning digital assets. The differing approach of the SEC to diverse market participants could hinder the progressive venture advancement while likely supporting additional established entities.
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