• John Deaton, a pro-XRP lawyer and founder of CryptoLaw, believes that the U.S. Securities and Exchange Commission (SEC) will lose its case against Ripple.
• Deaton gave examples of how different judges have dismissed the SEC’s arguments in other cases as lacking clarity or making no sense, and even reprimanded the SEC’s ethics and behavior.
• Gary Gensler, the head of the SEC, revealed his understanding of regulatory duty which implies that the SEC might find grounds for a crackdown on cryptocurrencies in various circumstances using an outdated method from the first half of 20th century – Howey Test.
John Deaton Believes SEC Will Lose to Ripple
Crypto Lawyer John Deaton recently expressed his belief that the United States Securities and Exchange Commission (SEC) would lose its case against Ripple after Judge Dismisses Its Arguments. This came after former SEC enforcement official John Reed Stark highlighted that the SEC had started to crack down on US-based cryptocurrency exchanges.
Examples Of The Weak Arguments From The SEC
Deaton supported his assertion by mentioning four instances where different judges found the SEC’s arguments to be meritless. He claimed that in the Ripple lawsuit, the judge shamed the SEC for not having a faithful allegiance to law. The legal expert also mentioned cases against LBRY, Grayscale, and Voyager where judges dismissed regulator’s arguments as lacking clarity or making no sense along with reprimanding their ethics and behavior.
Gary Gensler’s Approach Sparks Concern
Gary Gensler, head of U.S Securities and Exchange Commission testified before House Finance Committee revealing his understanding of regulatory duty which implies that they might find grounds for crackdown on cryptocurrencies in certain situations such as Twitter appearances or software updates etc considering them securities requiring registration without approval from them beforehand according to Howey Test – an outdated method from first half of 20th century used by them to prove all cryptos except Bitcoin are illegal without their approval beforehand..
Challenges With The Howey Test And Legal Clarity
Deaton further pointed out that Gary Gensler seems content with using Howey Test for proving all cryptos–apart from Bitcoin–must be illegal without prior authorization from them but crypto projects have difficulty getting resilient legal information when they seek contact with authority leading to confusion among users regarding their rights in such matters .
The article concluded by summarizing John Deaton’s statements about how he believes that U.S Securities and Exchange Commission would lose its case against Ripple eventually due to lack of clear regulations around cryptocurrency market along with lack clarity on laws related to it leaving investors confused about their rights in such matters leading to unethical practices being followed by authorities like Gary Gensler’s testimony implied which was another strong point why John believed so strongly about this case going towards ripple’s favor eventually