Amidst the legal clash between Coinbase and the U.S. Securities and Exchange Commission (SEC), attorney John Deaton, known for supporting XRP, has accused SEC Chairman Gary Gensler of rousing public sentiment and holding a contrasting stance on cryptocurrencies.
Deaton's accusation surfaces following the SEC's rejection of Coinbase's petition for crypto rulemaking, citing three main reasons: the application of existing securities laws to cryptocurrencies, the SEC's engagement in crypto securities through rulemaking, and the preservation of the Commission's discretion in setting its regulatory priorities.
On a platform formerly known as Twitter, Deaton pointed out Gensler's statements that elucidated the rationale behind the SEC's decision. Gensler asserted that "There is nothing unique or new about cryptocurrencies," challenging Coinbase's plea that implies the cryptocurrency ecosystem's uniqueness in terms of asset volatility and the categorization of all assets as securities under current laws. Deaton highlighted this as a direct contradiction to Gensler's prior testimony to Congress in 2023, where Gensler had suggested that cryptocurrencies fell outside the commission's jurisdiction due to their distinctive nature, thereby creating a regulatory void.
Deaton emphasized that Coinbase's request aligns with the SEC's prior perspective, as indicated by past communications. He noted Gensler's complete reversal on cryptocurrencies, attributing it to potential political motives and backing from Senator Elizabeth Warren. The SEC's stance on the cryptocurrency landscape seems ambiguous, evident in the conflicting statements made by Gensler and the commission's actions in general.
The SEC has opted not to appeal its loss against Grayscale Investments in an ongoing legal battle involving Coinbase and Binance. The lawsuit revolves around the company's endeavor to convert its Grayscale Bitcoin Trust into a spot exchange-traded fund (ETF).
