Ripple Attorney John Deaton’s Take on SEC’s Bitcoin ETF Stance

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The recent shift in the U.S. Securities and Exchange Commission’s (SEC) terminology and tone surrounding the spot Bitcoin ETF is addressed by Ripple’s XRP attorney, John Deaton. He surmises that Gary Gensler may have personal motives for the SEC’s shift in stance on approving a spot Bitcoin ETF. Positive discussions on the necessary adjustments to identify Bitcoin ETF applications have been in place between the issuers and the SEC. 

These discussions ensure the necessary adjustments are made to meet the SEC’s regulatory requirements. The issuers hope these constructive conversations will pave the way for the potential approval of a spot Bitcoin ETF shortly. However, whether these adjustments will be sufficient for the SEC to approve a spot Bitcoin ETF soon remains unclear. 

Deaton Reacts To SEC’s Change of Mind Regarding Spot Bitcoin ETF

Attorney John E. Deaton responded to a post on the social media platform X by analyst Scott Melker, which was his comment on an original post by Andrew, founder of X 3: Finance, Bitcoin, Blockchain. Better known as “The Wolf Of All Street,” Scott Melker reposted the U.S. SEC’s shift in tone and wording concerning the spot Bitcoin ETF. 

Deaton expressed his surprise and optimism regarding the SEC’s change of mind, stating that it could pave the way for a spot Bitcoin ETF to be approved soon. He emphasized the importance of regulatory clarity and how it could benefit both investors and the overall growth of the cryptocurrency market. 

“Scott is right”, says Deaton. 

“I’m someone who said I wouldn’t be surprised if the SEC wrote a long dissertation citing data or anecdotal evidence denying a spot Bitcoin ETF again, that wasn’t part of the SEC’s original denial that has been deemed arbitrarily and capricious by the Appellate Court”, commented Deaton.

Gensler’s Personal Take Might Be The Same

Deaton thinks Gary Gensler’s take on cryptocurrency hasn’t changed. It is very possible that he still holds cryptocurrency responsible for financing terrorism or other illegal behavior.

Despite Gensler’s personal opinion, Deaton believes that the public defeat in the Grayscale case and federal judges’ criticism of the SEC’s hypocritical, arbitrary, and capricious behavior have had a significant effect on the SEC.

Deaton commented on the causes: “I could be wrong, but I attribute it to the Court loss coupled with the Larry Fink effect.”

He thinks that Gensler is solely interested in the opinions of institutions or contributors. The crypto community contends that after serving his office in the SEC, Gensler will follow in the footsteps of former SEC Chair Jay Clayton and former SEC Director Bill Hinman and further his career at major companies like Goldman Sachs or BlackRock.