Massachusetts Representative Stephen Lynch has made a claim that the United States Securities and Exchange Commission (SEC) emerged victorious in its lawsuit against leading blockchain company Ripple.
In a video that quickly circulated online, Rep. Lynch refuted allegations that the SEC employs regulation by enforcement tactics to oversee the crypto industry.
Speaking about the regulatory approach, Rep. Lynch stated, “I want to address the claim that the SEC has been exercising regulation by enforcement as if there are no guidelines out there that these crypto firms would be bound by.” He went on to clarify that under the leadership of Chairman Gensler, the SEC has filed a total of 131 cases against crypto firms, winning 130 and a half, including the recent Ripple lawsuit.
Read Also: John Deaton: Thousands of Investors Bought XRP With Zero Knowledge about Ripple
Rep. Lynch asserted that the SEC is effectively regulating the crypto industry by applying the law, contradicting claims of a preference for regulation by enforcement.
Attorney John Deaton Responds
The video immediately caught the attention of John Deaton, the lawyer representing over 75,000 XRP holders and more than 4,000 Coinbase customers.
In a tweet, Deaton expressed his desire to testify on behalf of retail crypto holders during congressional hearings related to SEC enforcement actions.
The attorney further emphasized that facts and truth should matter in these hearings and tagged various members of the United States House Financial Services Committee, including Committee Chair Patrick McHenry and other prominent representatives.
@RepFrenchHill @RepHuizenga @WarrenDavidson @GOPMajorityWhip @PatrickMcHenry @RepDarrenSoto
FYI, I would love to have an opportunity to testify on behalf of individual retail holders. I represent 75K XRP holders and over 4K Coinbase customers. After all, shouldn’t facts and… https://t.co/gB3jtgViYt
— John E Deaton (@JohnEDeaton1) July 26, 2023
The remarks made by Rep. Lynch received mixed reactions from the XRP community. While some disagreed with his claim that the SEC is regulating through the application of the law, others pointed to previous comments made by Magistrate Judge Sarah Netburn in the Ripple-SEC case. Judge Netburn had criticized the SEC for litigating according to internal goals rather than an allegiance to the law.
A supposed XRP enthusiast responded, “Technically, Gensler won 25%. He lost on 3 of 4 types of XRP sales. If you factor in the fact that XRP in and of itself was declared to NOT be a security, he lost 4 of 5 principle arguments so he’s really at 20%, not half. Batting .200 gets you demoted to the minor leagues.”
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— TimesTabloid (@TimesTabloid1) July 15, 2023
Read Also: Attorney John Deaton Recalls Criticism of SEC by Judge Sarah Netburn in XRP Lawsuit: Details
Meanwhile, Ripple has clarified its stance on the lawsuit outcome. Despite the judge ruling that Ripple’s past XRP sales to institutional investors constituted securities, CEO Brad Garlinghouse declared the court’s decision an unequivocal victory for the company, as the verdict made XRP’s security status clearer. Ripple maintains that its main objective in the lawsuit was to gain clarity for XRP, and they consider this objective achieved.
As the Ripple lawsuit continues to garner attention and spark debate within the crypto community, the request made by Attorney John Deaton to testify on behalf of XRP holders adds a new dimension to the ongoing discussions surrounding SEC enforcement actions and their impact on retail investors.
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