SEC chief making unnecessary mess with crypto?
The US SEC recently launched investigations into digital assets companies have raised questions about their approach to the industry. Experts suggest that the head of the commission has too much on his plate to mess with the market.
Does the SEC have too much on its plate?
John Deaton, founder of CryptoLaw and attorney for XRP holders in the SEC Vs Ripple lawsuit, has written a commentary on Watchdog’s overreach. He mentioned that as the crypto industry evolves, many first-time investors are jumping into the space. However, he suggested that crashes in SPACs signal that the SEC chair has many sectors to mess with.
According to the report, Deaton mentioned that SEC Chief Gary Gensler has even called the crypto market the “Wild West” for investing. Gensler believes that these assets are used for some illegal activities. Meanwhile, most money laundering and fraud is done using dollars.
XRP lawyer said power grab seems to be the thing for SEC chief. The head of the commission has given limited input to the public about their rulemaking. However, this has increased the requirements for the publication of environmental data (ESG).
He added that this move will allow the SEC to advance its social agenda. This could also help them secure a broader assignment in the Biden administration.
No new legislation introduced for crypto
Deaton suggested that the SEC Chair’s fight against crypto may be his most dangerous and ambitious affront to constitutional norms. He highlighted that in every case since the Howey test found that collateral involves an actual contract of the relationship between seller and buyer.
Earlier, Coingape reported that the XRP lawyer suggests that the SEC commissioner may avoid an internal inquiry into past activities.
He also highlighted that Congress has failed to pass any new law directly involving the regulation of digital assets. Yet the SEC chief has used the lack of clarity to go after the crypto industry.
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