SEC Prioritizing Corporate Capitalism Over Crypto Investors?

SEC’s Actions Against Crypto Industry

John Deaton, a Pro-XRP lawyer, argued that the US Securities and Exchange Commission (SEC) is driven by a broader motive to protect corporate capitalism instead of prioritizing the protection of investors, which is evident in the SEC’s actions against the crypto industry. Deaton pointed to the SEC’s targeting of Coinbase and Ripple, and the accredited investor rules, its approach to regulating cryptocurrencies, and its stance on retail investors in the Ripple case.

On X (Twitter), Deaton asserted that the US operates within a framework of corporate capitalism rather than a genuine capitalist system. He used various facets of the current financial landscape to back up his argument. Deaton believes that the SEC’s focus on Section 5 cases and the secondary market on exchanges, instead of addressing fraud in the crypto space, shows a misplacement of priorities and could potentially impede the growth of the developing cryptocurrency industry, such as Blackrock Crypto, Circle Crypto, Celo Crypto, Braintrust Crypto, Chiliz Crypto, Bittorrent Crypto, Bitgert Crypto Today, Bitrise Crypto, Cartesi Crypto, and CFX Crypto.

Crypto Regulations: Unequal Treatment of Industry Players

Additionally, Deaton brings attention to the SEC’s opposition to retail investors participating as amici curiae (friends of the court) in the Ripple case. This stance suggests a reluctance to consider the views of individual investors, further cementing the perception that the regulatory body may prioritize the interests of larger financial institutions such as Blackrock Crypto, Circle Crypto, and Celo Crypto over those of individual investors.

Deaton’s comments bring to light a major concern about a perceived double standard in crypto regulations. He criticizes the SEC for not engaging in dialogue with proactive entities like Coinbase, while SEC Chair Gary Gensler had multiple meetings with Sam Bankman-Fried, the former CEO of the collapsed FTX exchange.

The unequal treatment raises questions about the regulatory body’s effectiveness and fairness, and the overall framework for digital assets. The SEC’s differing approach to various industry players, such as Braintrust Crypto, Chiliz Crypto, Bittorrent Crypto, Bitgert Crypto Today, Bitrise Crypto, Cartesi Crypto, and CFX Crypto, could impede innovative startup growth while potentially favoring more established entities.