XRP Lawyer Recalls Gary Gensler Video On ‘Crypto’ Panic Among Banks

Crypto News: Amid heightened enforcement actions and lack of regulatory clarity around crypto market in the United States, it is often discussed as to why the regulators are unfavorable to the web 3.0 ecosystem. Since January 2023, the U.S. Securities and Exchange Commission (SEC) began multiple enforcement actions against crypto businesses. The agency went after big names like Coinbase, Binance and Kraken, with the primary allegation being unregistered sale of digital assets, while it is an altogether different debate on whether certain cryptocurrencies should be called securities or commodities. Meanwhile, it is long argued that it is the big banks of Wall Street that want to gain market share in crypto ecosystem before the laws are streamlined.

Also Read: Circle Executive To Testify In US House Committee Hearing On Stablecoins

‘Crypto Panic’

Attorney John Deaton, who represents over 76,000 XRP token holders in the ongoing Ripple lawsuit against the SEC, has been long arguing that the big Wall Street banks want to get hold of some share in the crypto market and this is why the likes of SEC are dragging the regulation part. In a latest, he shared a video from 2018 wherein US investor Tim Draper is seen saying to SEC Chair Gary Gensler that the banks were in panic about the rise of cryptocurrency market.

“You can hear the bankers panicking right now (2018) and unite to say we are not letting this happen.”

The panic, in the words of Draper, is about crypto’s disruptive potential, and that incumbents would sue, exert media pressure and leverage government regulators to slow its progress. Deaton opined that it is all about protecting incumbents (banks).

Also Read: Terra Classic Community Remains Divided On Key Proposal, LUNC Price To Fall?