XRP Lawyer Warns Of Larger Risks For Crypto Investors From Gensler Hearing

Crypto Market News: XRP Lawyer John Deaton, who represents over 70,000 XRP token holders in the U.S. Securities and Exchange Commission (SEC) Vs Ripple lawsuit, warned about major implications from the Congressional hearing of Gary Gensler. He recalled House Financial Services Committee Chairman Patrick McHenry’s laser sharp question to Gensler on his views on whether Ethereum is a security or a commodity. McHenry had in his initial arguments countered Gensler’s subverting response saying the SEC made a comment on the same in over 50 enforcement actions against the crypto market.

Also Read: Major Setback For Bitcoin Miners As Intel Ends Chip Support

Attorney Deaton recalled the example of Ripple lawsuit in which the SEC referred to XRP tokens as being sold as a securities offering. He also took the example of the latest crypto market lawsuit on Bittrex exchange in which the SEC called six cryptocurrencies as securities.

Implications For Crypto Market From Gary Gensler Hearing

During the hearing, Gensler indicated that cryptocurrencies having a website Twitter account, software that needs updates and has a team of lawyers hired, they can be called securities. On the contrary, Deaton observed, that the SEC’s position had always been that crypto businesses should come forward to talk to the agency for complying with the law, as against hiring lawyers to talk. Hence, this criteria for a cryptocurrency to be called a security could put the US crypto market in danger, the attorney warned.

Meanwhile, the XRP community is hopeful of a favorable outcome in the SEC Vs Ripple lawsuit if Judge Analisa Torres is aware of the developments in the latest hearing.

More interestingly, Gensler also said that if crypto companies don’t come into compliance with the United States laws, they are better off away from the country. This view attracted huge criticism in recent times as the US market always thrived on success from a position as innovation leader. “Gensler does not seem bothered about innovation leaving the United States,” Deaton said.

Also Read: Donald Trump Returns To NFTs With His Series 2 Collection