John Deaton, the attorney who secured a victory for Ripple against the SEC, has accused Gensler's team of using double standards. He also alleges that they favor traditional corporations.
Deaton alleges that the Securities and Exchange Commission has its investigative lens fixated on two market players: Coinbase and Ripple. Deaton suggests that the SEC is devoting an excessive amount of attention to these entities, and Gensler's actions cannot be fully justified by a sincere concern for safeguarding the interests of crypto holders. The attorney conjectures that beneath the publicly proclaimed investor protection lurks a deeper agenda — the preservation of the corporate capitalism status quo.
It's difficult to argue against the notion that the leading U.S. regulator is genuinely acting in the interests of major financial corporations. These corporations have long disregarded the free market system they claim to support.
John Deaton has stated that he's prepared for a head-on conflict with the Commission. He argues that the SEC's focus is on driving competition out of the market rather than addressing the widespread fraud cases in the crypto sector. Deaton contends that this approach stifles innovation and dampens the substantial potential of the digital industry.
Retail Investors Are Being Sidelined
One aspect that has caught Deaton's attention is the SEC's palpable lack of interest in inviting retail investors to participate as amici curiae in the Ripple case. It appears that the regulators do not give much weight to the opinions of smaller investors. This behavior starkly suggests that Gensler's team is aligning with institutional entities and giving precedence to more established, or rather, monopolistic actors in the field. However, Deaton is prepared to push for a level playing field and the establishment of a fair regulatory framework for all.
Double Standards in Crypto Regulation
Additionally, Deaton highlights the SEC's unequal treatment of varying players in the digital market. He emphasizes the absence of open dialogue with compliant companies like Coinbase, while the SEC Chair had numerous personal exchanges with Sam Bankman-Fried, whose actions have undeniably tarnished the reputation of crypto exchanges. To Deaton, this discrepancy feels unjust.
The pro-crypto attorney posits that the undue pressure on XRP and ETH, alongside the overlook of numerous shitcoins coined solely for pump-and-dump activities, signals the SEC's intent to suppress the growth of projects that could substantially alter the global financial landscape. Interestingly, the interests of defrauded investors seem to be a peripheral concern to them.
Deaton believes that this situation threatens the progression of substantial digital initiatives, effectively benefiting TradFi entities, such as Blackrock and Fidelity.
