- In response to the recent ruling in the BinanceUS and SEC court ruling, Attorney John Deaton believes that the SEC’s arguments are without merit.
- More scrutiny from judges will go a long way in bringing in success for cryptocurrency assets and firms being targeted by the SEC.
The U.S. Securities and Exchange Commission is overstepping and making claims without merit. This sentiment is being held by John Deaton. The attorney who is also the founder and host of CryptoLaw has been a vocal Ripple supporter since the SEC Vs Ripple lawsuit kicked off.
Deaton has most recently highlighted the many ways in which the SEC has proven to have been unjust with regards to the lawsuits filed against U.S. based firms.
Per recent reports, a bankruptcy judge ruled in favour of BinanceUS, and against the SEC, allowing the exchange to carry on with its $1.3 billion purchase of Voyager assets.
According to the attorney, the SECs refusal to grant Binance rights to make the purchase was solely because of its “anti-crypto” agenda.
Voyager is another example of a federal judge deciding the SEC’s arguments are 💯 w/o merit.
Recent examples:
1) The @Ripple case: a federal judge, in a written ruling, literally stated SEC lawyers were being hypocrites and that they lacked faithful allegiance to the law. https://t.co/pCVoLHAhtU
— John E Deaton (@JohnEDeaton1) March 8, 2023
The attorney highlighted the ongoing Ripple case, the LBRY case, and the Grayscale SEC hearing as some of the cases that highlights the flaws in the SEC’s arguments.
John Deaton lists reasons why the SEC’s arguments are flawed
Citing the Ripple case, the attorney referenced the written ruling that critiqued the SEC’s credibility and highlighted the SEC’s biases. He wrote in another tweet.
In Ripple, the judge said SEC lawyers are more interested in advancing their own agenda than adhering to the law. Think about how significant that is. How do SEC lawyers enforce the law if they don’t themselves honor the law. As a former federal prosecutor, I’d be ashamed.
In the LBRY case, he tells his Twitter followers that the last two hearings in the case revealed that the judge appealed to the SEC to provide clarity to LBRY users and the broader market.
As for the Grayscale vs SEC hearing, the attorney acknowledged that the judges were troubled by the arguments presented by the SEC. He proceeded to mention that he had already called a win for Grayscle. According to him, the SEC denied a spot Bitcoin ETF while permitting futures and shorts Bitcoin ETFs was arbitrary and capricious under the law. Deaton asserted.
The 4 examples above demonstrate that just because a regulator like GaryGensler says something it doesn’t make it so. When Clayton was Chairman, the SEC declared Bitcoin and ETH non-securities. Hinman’s speech stating ETH isn’t a security is still on the SEC website.
The court keeps the SEC in check, Deaton said, adding that in response to his Writ of Mandamus, the SEC agreed that it does not have the final say on what is or isn’t a security, the judge does.
Unless congress takes action, the only way that crypto firms and cryptocurrencies can achieve more and more success is if the judges continue to scrutinize the SEC, Deaton concluded, while noting that Gensler will not remain SEC chairman forever.
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