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Highlights
- The SEC is accused of contradicting its stance on the classification of Ethereum.
- John Deaton also joined the fray and held Chairman Gary Gensler responsible for the mishap.
- The XRP attorney also highlighted the need for subpoena against the SEC.
In a scathing rebuke of the Securities and Exchange Commission (SEC) and Chairman Gary Gensler, prominent XRP advocate and lawyer John Deaton has launched a blistering attack. He accused Gensler of perpetuating bad faith regulation and ‘infecting’ the entire agency.
XRP Lawyer John Deaton Bashes SEC Chair Gary Gensler
Deaton took to social media platforms X to express his frustration. He stated, “With all due respect, it’s time to serve multiple subpoenas on Gary Gensler and the SEC.” In addition, he referenced his amicus brief in the Coinbase vs SEC case to help understand the picture.
He added, “I encourage everyone to read the Amicus Brief I filed in the Coinbase case. There’s a section in the brief proving Gensler is a bad faith regulator who has infected the entire agency.” This condemnation comes in the wake of House Financial Services Committee Chairman Patrick McHenry’s statement regarding the ongoing legal battle between Consensys and the SEC.
McHenry minced no words and asserted, “Just months after a federal judge sanctioned SEC enforcement lawyers for lying to the court, new evidence shows Chair Gensler himself misled Congress.” Moreover, McHenry highlighted Gensler’s testimony to the Financial Services Committee last April, where he refused to address inquiries regarding the SEC’s classification of Ethereum.
The HFSC Chairman alleged that Gensler’s silence was a deliberate attempt to misrepresent the Commission’s stance. He emphasized, “Classifying Ether as a security contradicts previous statements of the SEC and Chair Gensler — yet another example of the arbitrary and capricious nature of the agency’s regulation by enforcement approach to digital assets.”
The Consensys lawsuit, at its core, demands the SEC to officially acknowledge that Ethereum is not a security. However, the SEC’s prior stance makes the situation complicated as the regulatory agency might end up contradicting its own statement.
Also Read: XRP Price Prediction: Is May A Good Time To Buy XRP?
Bill Morgan Offers Differing Take On Gensler Misleading Congress
Another XRP lawyer, Bill Morgan, responded to recent claims regarding Ethereum’s classification by the SEC. Morgan clarified, “This is not even accurate. The SEC is not classifying ETH as a security.” He emphasized the distinction, highlighting that the SEC is investigating whether offers or sales of Ethereum qualify as securities.
Referring to Judge Torres’ ruling in SEC vs Ripple, Morgan stressed, “A token itself is not a security but offers or sales of it in all the circumstances may be an investment contract.” His statement rebuts assertions made by Patrick McHenry and the Financial Services GOP, underscoring the need for clarity in regulatory matters.
The Financial Services GOP’s statement read, “Classifying #ETH as a security contradicts previous statements of the SEC and Chair Gensler. Republicans will continue to hold the SEC accountable for its regulatory overreach that is stifling innovation, leaving consumers unprotected, and risking our national security.”
Also Read: ETH Futures ETF Issuers Stay Positive on SEC Approval Despite Feud
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