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CryptoLaw Founder and famous XRP enthusiast, John Deaton, blew off steam on the U.S Securities and Exchange Commission. This reaction of Dean was in response to the latest reports of the agency investigating Coinbase. The SEC is investigating Coinbase in regards to trading unregistered securities. Unregistered securities is a term that regulators have started using in relation to cryptocurrencies.
Deaton was not happy with the fact that Coinbase was granted permission four years ago in relation to XRP along with other “now under investigations” tokens. The SEC still levied allegations on the exchange. Following the investigation against Coinbase in December 2020, the exchange even delisted XRP. The regulators have taken notice of the exchange’s strategy to handle securities legally.
According to Deaton, aside from the agency’s behavior regarding Coinbase and Brian Armstrong, its CEO, this is not how regulations should work. This behavior of the regulator has created the crypto world a battleground with the regulators and crypto community against each other.
For the uninitiated, this news is a follow-up to the SEC vs Coinbase case. The SEC has carried out an investigation. A former employee of the exchange was taken into custody in relation to the suspension of insider trading.
The exchange in a response filed a lawsuit against the suspect. However, it completely denies any involvement in the trading of unregistered securities. The exchange said all the assets on its platform go through a procedure. And, then it is decided whether it is a securities or not. Moreover, the exchange highlighted that the legislation is outdated. It highlighted the dire need for clarity in the crypto regulation.
This attitude was also cited by Ripple CEO Brad Garlinghouse, who accused the SEC of using a coercive approach instead of working on clear regulations for the industry. Coinbase also accused the SEC of approaching the matter directly through a lawsuit instead of first having a one-on-one conversation. Brad Garlinghouse, CEO of Ripple, had the same complaint with the SEC.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
