Pro-XRP Lawyer John Deaton Alleges SEC Prioritizes Corporate Capitalism Over Investors’ Interests
In a series of impassioned tweets, John Deaton, a prominent lawyer advocating for the cryptocurrency XRP, has accused the United States Securities and Exchange Commission (SEC) of pursuing actions that serve the interests of corporate capitalism rather than safeguarding investors. Deaton’s statements shed light on the contentious relationship between the SEC and the crypto industry, raising questions about regulatory priorities and the treatment of retail investors.
The main argument presented by Deaton is that the SEC’s actions against the crypto industry have been misaligned, focusing on restricting market access for non-accredited investors and targeting secondary market exchanges rather than tackling fraudulent activities within the sector. He specifically highlights the SEC’s objection to retail investors participating as amici curiae in the Ripple case, suggesting that the regulatory body may be reluctant to consider the views of individual investors in its decision-making processes.
For years I’ve said we don’t exist in a true capitalist system. We have corporate capitalism in the U.S. Look at the accredited investor rules and how they discriminate against the working class. Look at the attack on Crypto and the attack on Coinbase which allows non-accredited… https://t.co/JVis3xw30f
— John E Deaton (@JohnEDeaton1) July 29, 2023
Deaton’s tweet illustrates his concerns, stating, “For years I’ve said we don’t exist in a true capitalist system. We have corporate capitalism in the U.S.” He points out the discriminatory nature of the accredited investor rules, which he claims disadvantage the working class. These rules restrict certain investment opportunities to wealthy, accredited individuals, potentially limiting opportunities for retail investors to participate in innovative ventures like cryptocurrencies.
The lawyer also draws attention to the disproportionate focus on Section 5 cases and the attacks on secondary market exchanges rather than directly addressing fraudulent practices. According to Deaton, this approach hampers the growth and potential of the crypto industry, hindering the democratization of financial markets.
Furthermore, Deaton expresses frustration with the pattern of government bailouts for major corporations, such as car companies and banks. He argues that smaller businesses are allowed to fail due to their bad decisions, while larger entities are propped up by taxpayer funds, creating an environment where corporate interests are prioritized over individual enterprise.
In his tweets, Deaton praises the fundamental concept behind cryptocurrencies, especially Bitcoin, which enables anyone with a smartphone to participate in free markets without intermediaries like banks or money remittance companies. He cites an example of a small company, LBRY, offering an alternative to a giant like YouTube, emphasizing the potential for innovation and competition within the crypto space.
The lawyer accuses SEC Chair Gary Gensler of refusing to meet with Coinbase, the largest crypto exchange in the United States, while engaging multiple times with Sam Bankman-Fried (SBF), the CEO of FTX exchange. Deaton highlights SBF and FTX’s alleged fraudulent activities and expresses concerns over the SEC’s priorities in meeting with figures associated with such misconduct.
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