SEC Chief Accused of 'Gaslighting' in Legal Dispute with Coinbase over Crypto Regulations
Summary:
In this continuing legal battle with the Securities and Exchange Commission (SEC), John Deaton, the legal representative of XRP holders accuses the SEC chief, Gary Gensler, of manipulating public opinion regarding cryptocurrencies. The controversy escalates as the SEC dismisses Coinbase's plea for rulemaking on grounds that challenge Coinbase's perspective on the singular nature of the crypto world. The foundation of their demand relates to the volatility of crypto assets and their classification as securities. Deaton argues that this contradicts Gensler's previous positions, hinting at political interference influencing the SEC chair's sudden reversal on the matter.
The legal battle between Coinbase Global Inc. and the U.S. Securities and Exchange Commission (SEC) takes another turn as John Deaton, the lawyer representing XRP holders, levels accusations of 'gaslighting' against SEC's chief, Gary Gensler. Deaton contends with Gensler's position on cryptocurrencies, further fueling the conflict. The tension escalated when the SEC dismissed Coinbase's plea for rulemaking based on three grounds. These grounds include the application of existing securities laws to cryptocurrencies, the SEC's rulemaking involvement in the crypto securities markets, and maintaining the Commission's authority in deciding its rulemaking priorities.
In response to the SEC Chair’s letter, Deaton stressed that despite these reasons, cryptocurrencies are not unique or groundbreaking. Moreover, contrary to Gensler's view, Coinbase's appeal for rulemaking is based on the premise that the crypto world is distinct regarding asset fluctuations and the classification of all assets as securities under prevailing laws.
Deaton claims this viewpoint contradicts the statements made by Gensler during his congressional testimony earlier this year. Deaton recalls Gensler stating that due to its distinctive nature, cryptocurrency falls outside the SEC's jurisdiction, leading to regulatory gaps. The lawyer argues that Coinbase's appeal hinges on the SEC's judgments, as demonstrated through previous interactions.
Deaton pointed out Gensler's U-turn on the matter of cryptocurrency, ascribing it to political agendas facilitated by Senator Elizabeth Warren. Meanwhile, the SEC's stance on the cryptocurrency ecosystem remains inconsistent, either via Gensler's statements or the commission's overall actions. Amid legal wrangles with Coinbase and Binance concerning crypto securities, the regulator chose not to fight its loss against Grayscale Investments. This particular case involves Grayscale's bid to convert its Bitcoin Trust into a functioning spot Exchange Traded Fund (ETF).
Published At
12/16/2023 1:05:22 PM
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