XRP Lawyer John Deaton has condemned US SEC Chair Gary Gensler for his regulatory policies as Coinbase achieves a partial victory against the agency.
The US Securities and Exchange Commission (SEC) and Chairman Gary Gensler have been dealt another setback by the recent decision of the US Third Circuit Court in the Coinbase litigation. The ruling incites debate regarding Gary Gensler’s enforcement policies even though the court criticizes the SEC for its lack of transparency in denying Coinbase’s request for crypto-specific regulations.
XRP lawyer John Deaton excoriates SEC Chair Gary Gensler
John E. Deaton, a pro-XRP counsel, criticized Gensler in his most recent X post on January 14 for “leaving the SEC in disgrace.” The attorney contended that the SEC’s reputation has been substantially tarnished due to its unwillingness to provide regulatory clarity.
In addition, Deaton stated that the new SEC Chair, Paul Atkins, is confronted with a problematic situation and called for a regulatory overhaul. Deaton is among the many who believe that the new SEC Chair has the potential to reform the crypto regulatory landscape under the Trump administration.
Furthermore, the XRP counsel recommended the elimination of the accreditor investor rule. Deaton perceives the SEC’s classification of individuals as accredited investors as prejudiced, as it is based on wealth and income thresholds. He declared, “The rule is oppressive in a society of self-determination and inconsistent with free market capitalism.”
Coinbase Achieves a Partial Victory Against the Securities and Exchange Commission
The US Third Circuit Court ordered the SEC to reevaluate the provision of explicit guidelines on cryptocurrency regulation in the Coinbase vs SEC lawsuit. Coinbase submitted a petition of rulemaking to the Securities and Exchange Commission (SEC) in 2022, requesting that the agency clarify its regulations regarding cryptocurrency. Although the exchange petitioned the SEC for crypto-specific regulations, such as asset classification, the petition was denied.
Nevertheless, in the most recent court ruling, the regulator was compelled to explain its refusal to grant the exchange’s petition. The judge’s assessment was as follows:
“Rather than force the agency to make a rule, we order it to explain its decision not to. Indeed, a rule may not prove necessary to solve the notice problems here; the agency could just state its position on crypto assets unequivocally.”
The cryptocurrency community celebrates Coinbase’s victory
Coinbase’s Chief Legal Officer, Paul Grewal, disclosed the exchange’s victory in an X post, stating, “We have successfully petitioned the Third Circuit for a writ of mandamus.” The court characterized the SEC’s action as “arbitrary and capricious,” as per his statement.
Simultaneously, Stuart Alderoty, Ripple’s Chief Legal Officer, commended Coinbase and Grewal for their victory over the regulatory agency.
In the interim, attorneys such as former SEC Commissioner James Farrell and pro-XRP attorney Fred Rispoli deliberate on the impact of the lawsuit on the SEC’s ability to develop crypto regulations and the potential implications for other crypto litigation under the leadership of incoming Chair Paul Atkins.
