The United States Securities and Exchange Commission is coming under more scrutiny and criticism regarding its compelling legal actions against cryptocurrency firms. Experts and industry insiders challenge the SEC’s consistency and reasoning for its choices.
Recently, a pro-XRP attorney and the Chief Legal Officer (CLO) at Coinbase expressed their conviction that the SEC’s interlocutory appeal will be denied. John E. Deaton, a lawyer who has gained popularity for his active pro-XRP attitude and support for Ripple, has been flaunted as one of the key players in this developing drama.
Deaton has been outspoken in his criticism of the SEC’s handling of the case about the arguments’ apparent inconsistencies. According to a recent statement from Deaton, the SEC’s actions in this issue have been nothing short of puzzling. Deaton wrote on his X social media handle that “it is becoming more obvious that the legal basis for their enforcement efforts is unclear and inconsistent.”
Deaton Praise Ripple’s Chief Legal Officer (CLO), Says SEC’s Chances, Slim
Deaton also praised Ripple’s CLO, Stuart Alderoty, alongside his legal team for exposing what they consider to be hypocrisy in the SEC’s justifications. Tobi Loba, cryptocurrency industry analyst with Time Tapliod, explained that Deaton’s admiration for Alderoty’s legal team demonstrates the rising belief among the cryptocurrency community that Ripple is effectively destroying the SEC’s case.
However, in Paul Grewal’s analysis, the CLO of Coinbase weighed in on the issue, calling Ripple’s response to the SEC’s interlocutory appeal “hypocrisy.” Deaton gave a sad assessment when questioned about the SEC’s prospects for victory in the potential provisional appeal in an interview published on the Time Tapliod platform.
Deaton says, “security(ies regulator’s chances of success in this appeal are slim at best.” Deaton has previously predicted that Judge Torres will rule against the SEC’s interlocutory appeal, stating that the growing criticism and obvious contradictions in the SEC’s arguments are enough to give one hope that the appeal will be denied.
Critics survey obtained from various online cryptocurrency communities contend that the SEC’s pursuit of Ripple is an example of a larger issue, including a lack of regulatory clarity and a propensity to apply securities laws to new technology.
Analysis Points Out SEC’s Undoing, Cryptocurrency Community Pays Close Attention
Deaton’s analysis also explain the growing unhappiness with the SEC’s strategies and body language. From general opinion, the agency’s actions are harmful to innovation and the growth of blockchain technology in the United States.
Recent observation shows that it becomes harder for SEC to maintain its stance in the continuing legal dispute as prominent players like Coinbase’s Paul Grewal and XRP’s John Deaton have joined other critics in doubting the process.
Meanwhile, XRP price in the previous week went below the major assisting level, hitting $0.50. As of press time, it has rebounded moments after Ripple sued, opposing the SEC’s provisional appeal. Big time investors and digital currency traders alike are growing doubt about the fast recovery in the price of XRP amid the delay in the approval of the BTC Exchange-traded fund as well as September FUD.
It was also gathered that Ripple recently released 1 billion XRP coins while locking up 800 million, thus supplying the market with the liquidity it needs. The latest analysis on CoinGape said that with enough liquidity in the market, the price of XRP will likely be pushed towards the $0.60 price mark.
