Attorney Deaton Indicts SEC, Points Out New Evidence For Corruption

The dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) has taken a new direction. XRP’s supporter, and outspoken critic of the SEC’s handling of the case, renowned lawyer John E. Deaton, has recently brought attention to fresh material that, in his opinion, suggests possible shady deals inside the regulatory body.

Deaton’s claims have sparked a new round of controversy and disagreement among cryptocurrency enthusiasts. The regulatory body’s actions have drawn criticism from a range of legal experts and advocates, which has escalated the debate surrounding the SEC’s case against Ripple in recent weeks.

Chief Policy Officer at the Blockchain Association Jake Chervinsky, who has been a vocal opponent of the SEC’s handling of the case from the beginning, is one of the voices raising the alarm. Deaton’s assertions have joined the increasing chorus of people demanding accountability and transparency in the regulatory process.

The fate of the continuing legal struggle between Ripple and the SEC is yet unknown. The case’s controversy, however, has spurred a larger conversation about the U.S. government’s approach to regulating cryptocurrencies.

Deaton Lists SEC’s Mistakes, As Cryptocurrency Community Reacts To Comments

Deaton utilized Chervinsky’s claims in a recent tweet to highlight what he believes to be significant mistakes made by the SEC. According to Deaton, there is fresh evidence that suggests the SEC might have known and ignored the general market consensus that XRP wasn’t a security.

The basis for Deaton’s claims is traced to a 2018 lecture made by former SEC employee William Hinman, who claimed that Ethereum and Bitcoin were not securities. According to Deaton, this declaration was a turning point that ought to have alerted the SEC to the uncertainty surrounding XRP’s classification as a security.

The report has it that until the action against Ripple was filed, the SEC did not offer clarification or direction on XRP. In reaction to Deaton’s post, the cryptocurrency community was overwhelmed with comments, many of which echoed his worries regarding the actions of the SEC.

Consequences Of Deaton’s Claims Revealed, Carbone Comments

Reacting to the recent report, Jake Simmons from the Bitcoinist platform said that Deaton’s claims have important possible ramifications. According to Simmon, it might cast doubt on the regulating body’s goals and objectives if it turns out that the SEC was aware of the market’s belief that XRP was not a security yet went after Ripple through legal action.

The Vice President (VP) of Policy at Digital Chamber, Cody Carbone, reacting to Deaton’s comments, presented a long insight into what transpired in the Government Accountability Office (GAO)’s conclusions, as contained on the SAB 12. Carbone, like Deacon, criticized the SEC for its move to discourage the major relevance of the SAB 121 when it attempted to label it an ordinary “agency statement.”

Carbone, in his response to SEC’s accusations, said that the procedures by the Congressional Review Act (CRA) compels all agency laws to go through a review phase, which takes 60 days. He further explained that the 60-day timing will enable Congress to assess (and, when necessary) disapprove the laws introduced by the affected federal agencies.

According to Carbone, the rules will be nullified and prevent the agencies from reintroducing similar guidelines without clear approval from Congress should the idea of disapproval gain dominance or be passed by the President or the Houses of Congress.