It is widely acknowledged that the Securities and Exchange Commission (SEC), particularly under the leadership of Chairman Gary Gensler, has a negative stance toward cryptocurrencies.
John Deaton, a lawyer specializing in digital currencies and the founder of Crypto Law, has highlighted the SEC’s confrontational actions against cryptocurrencies and their issuers, which appear incongruous when compared to the agency’s attitude in the recent past.
Deaton Sheds Some Light
John Deaton has highlighted the inconsistencies in the Securities and Exchange Commission’s (SEC) approach toward cryptocurrencies. He began by referencing William Hinman’s well-known “Hinman speech” in which he argued that a digital asset marketed as an investment to non-users by promoters to develop the enterprise, can be, and most often is, security.
Deaton stated that in this context, XRP does not fit the definition of security, yet the SEC is suing Ripple, the issuer of XRP, for it. The Hinman documents run counter to the SEC’s whole argument and have been a constant source of contention in court. Despite this, Chairman Gary Gensler has repeatedly said that Hinman’s view has nothing to do with the SEC, yet they still do not want the documents revealed for “some” reason.
Deaton also pointed out that according to the SEC’s 2019 Framework for Digital Assets, a cryptocurrency is unlikely to pass the Howey test if it can be used to make instant payments in a broad range of situations or operates as a replacement for fiat currency. It’s worth noting that SEC employees could legally buy and sell XRP up to April 2019.
He said: “On this info alone – even if you hate Ripple – you realize how screwed up and all over the place the SEC’s approach to crypto has been.”
XRP’s Current Performance
As of this writing, XRP has had a nearly 10% gain over the previous week. Despite the ongoing litigation between the Securities and Exchange Commission (SEC) and Ripple, the network has still achieved several major milestones.
Many in the cryptocurrency industry, including Ripple CEO Brad Garlinghouse, believe that the company will ultimately emerge victorious. John Deaton, a lawyer specializing in digital currencies, claims that if Ripple does not win, it could have a negative impact on other crypto assets and platforms as well.
This article has been originally published at: https://coinpedia.org/news/crypto-lawyer-reveals-flaws-in-secs-confrontational-approach-to-digital-assets/