John Deaton, the legal representative of over 75,000 XRP holders, didn’t hold back when expressing his disapproval of Gary Gensler, the Chair of the U.S. Securities and Exchange Commission (SEC).
Deaton went public with his demand for Gensler’s removal from office, highlighting his belief that Gensler’s academic qualifications do not necessarily equate to a deep understanding of investment contracts and securities.
Read Also: XRP Holders Attorney John Deaton Finally Releases the Highly Anticipated “Big Announcement”
Deaton Accuses Gensler of Legal Disregard
Deaton’s fiery post was a reply to an old video of Gensler where he agreed that Hinman’s speech on Ethereum was not a personal opinion and that ETH transformed from a security to a non-security.
Deaton took particular issue with Gensler’s assertion that assets promoted as an investment should be classified as securities. He argued that this viewpoint disregards the fact that U.S. securities laws don’t apply to assets acquired for non-investment purposes.
The popular attorney accused Gensler and the SEC of skirting the law and the Howey test. He pointed to the agency’s acknowledgment that it doesn’t consider the common enterprise factor of the Howey test. The SEC’s regulatory actions explain Deaton’s desire to see Gensler removed, which could lead to an overhaul of the regulatory approach of the SEC.
John Deaton noted, “More importantly, he doesn’t give a shit what the law says. The SEC has publicly admitted that it ignores the common enterprise factor of the Howey test. It’s on the SEC website today. Gensler must go.”
I don’t care that @GaryGensler taught at MIT. The man has has no clue what is or isn’t an investment contract aka, a security. According to him, if an asset is being promoted by someone it transforms the asset into a security. He completely ignores the fact that U.S. securities… https://t.co/0NxRRMZ696
— John E Deaton (@JohnEDeaton1) October 1, 2023
Gensler has adopted a stringent approach to crypto regulation. He believes that crypto entities must adhere to existing securities laws and that most digital tokens should be considered securities. This belief was evident in Gensler’s testimony at the recent House Financial Services Committee hearing and has sparked considerable backlash from the crypto industry.
Many in the crypto community believe that Gensler is overstepping his authority. They believe that Congress should make decisions like these. Gensler’s methods have also failed to provide clarity, leaving crypto entities like Binance and Coinbase in the dark when trying to comply with securities laws.
Read Also: XRP Lawsuit: John Deaton Predicts Judge Torres’s Decision on SEC Interlocutory Appeal
The Community’s Response
There were a lot of responses in support of Deaton’s call for Gensler’s removal. Gensler has become an enemy of the crypto community, and most feel he does not support innovation.
Wayne Vaughan, the CEO of Tierion, pointed out that the crypto community is learning an expensive lesson. This lesson is that the ideology of the regulator trumps any experience or expertise they have in the field they are regulating.
This makes them push for unreasonable regulations and contradict themselves despite clear evidence that their actions are wrong.
Follow us on Twitter, Facebook, Telegram, and Google News
