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- Attorney John Deaton said that SEC Chair Gary Gensler is favoring his friends on Wall Street while neglecting crypto industry players.
- He added that Gensler would pursue the case against Ripple until the Vanguard Group isn’t satisfied.
The legal battle between blockchain startup Ripple Labs and the U.S. Securities and Exchange Commission (SEC) continues to see new twists in the tale. Many market players see this case as extremely crucial in determining the future of the digital assets industry.
If Ripple wins the case, it would be a new dawn for the crypto industry. On the other hand, if SEC manages to get its way through, it would mean that the crypto industry would see even tougher regulations in the way ahead.
CryptoLaw, a platform launched by attorney John E. Deaton, has disclosed some underlying secrets of the functioning of SEC Chair Gary Gensler. In his so-called “Gensler Files’ Deaton stated that the SEC Chair might be acting in the interest of others.
Back in July 2022, it came to light that SEC Chair Gary Gensler had assets of more than $100 million in funds. These funds are mainly managed by the Vanguard Group through its two firms – Annabel Lee LLC and Marital Trust. Deaton commented saying
It’s important to note that Vanguard Group manages Gensler’s personal fortune of $100M and he has given them excessive access to his office since he became SEC Chair.
Also, Gensler’s public schedule shows no notable meetings with crypto-related companies, however, he conducted at least seven meetings with Vanguard Group.
Just at a time when the entire crypto industry is facing “Operation Choke Point 2.0,” Genseler’s selective favoritism towards financial giants on Wall Street is clearly evident. Back in September, Eleanor Terrett, a journalist at Fox Business, also pointed out that Gensler’s public meeting includes the ones with executives of CFTC, the SEC, and Vanguard Group, along with the ambassador for China Nicholas Burns and Black Rock, but none with crypto industry players.
Reason Behind SEC’s Crackdown on Ripple and Crypto
The U.S. Securities and Exchange Commission (SEC) has been all after Ripple over the last two years. Attorney John E. Deaton has a theory behind SEC’s actions. Deaton noted that Gensler will continue his actions of regulation by enforcement unless he doesn’t satisfy his friends on Wall Street. In his Twitter thread last month, Deaton wrote:
He will continue his regulation by enforcement policy, not providing clarity and guidance and later, once the legacy players are satisfied, there will be some form of clarity worked out and then, crypto will be labeled safe enough and investors “protected.”
The attorney further explained that although Wall street giants like BlackRock are bullish on crypto, they are waiting for regulations to kick in.
One thing is for sure Ripple’s case would certainly set a precedence in the crypto space. It would also mean the start of a regulatory-driven approach to digital assets in the US.
