Pro-XRP advocate, John Deaton, has voiced his belief that the actions taken by the United States Securities and Exchange Commission (SEC) against the crypto industry are not solely focused on protecting investors but driven by a broader motive to safeguard corporate capitalism.
Deaton has pointed out what he sees as an attack on cryptocurrencies, with specific reference to the SEC’s actions directed at Coinbase and Ripple.
In his statements, he has delved into several aspects, including the accredited investor rules, the SEC’s approach to regulating cryptocurrencies, and its treatment of retail investors in the Ripple case.
Taking to Twitter, Deaton has emphasized his conviction that the U.S. operates within a framework of corporate capitalism, rather than a genuine capitalist system.
He has cited various elements of the current financial landscape to bolster his argument.
One of Deaton’s key concerns revolves around the SEC’s allocation of limited resources towards Section 5 cases and its emphasis on targeting secondary markets on exchanges, rather than focusing on addressing fraudulent activities within the crypto space.
According to him, this misplaced focus could stifle innovation and hinder the growth of the burgeoning cryptocurrency industry.
In addition, Deaton has brought attention to the SEC’s opposition to allowing retail investors to participate as friends of the court (amici curiae) in the Ripple case.
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He suggests that this reluctance to consider the views of retail investors reinforces the perception that the regulatory body may prioritize the interests of larger financial institutions over those of individual investors.
Another major concern raised by Deaton is the perceived double standard in crypto regulation.
He criticizes the SEC for not engaging in dialogue with proactive entities like Coinbase while highlighting that SEC Chair Gary Gensler had multiple meetings with Sam Bankman-Fried, the former CEO of the collapsed FTX exchange.
This unequal treatment raises questions about the effectiveness and fairness of the regulatory body, as well as the overall framework for digital assets.
Deaton fears that such disparate treatment of various industry players may hinder the growth of innovative startups while potentially favoring more established entities.
In conclusion, John Deaton contends that the SEC’s actions against the crypto industry are driven by a broader motive to safeguard corporate capitalism, rather than solely prioritizing the protection of investors.
His concerns about the misplacement of priorities, the treatment of retail investors, and the potential double standard in regulation call for a more transparent and equitable approach to nurturing the cryptocurrency industry’s growth.
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