The post Ripple Lawyer John Deaton Slams Gensler for Lack of Clarity on Crypto Laws appeared first on Coinpedia Fintech News
The U.S. Securities and Exchange Commission Chair, Gary Gensler, was widely criticized and mocked by the public for evading essential questions during his hearing in front of the U.S. House of Financial Services Committee.
John Deaton Slams Gary Gensler
John Deaton, the lawyer and legal rep. of Ripple’s XRP holders, took to Twitter and furiously slammed Gary Gensler, demanding that he leave his office.
Deaton says that he doesn’t give a damn if SEC Chair Gary Gensler taught at MIT (Massachusetts Institute of Technology) or not because he has no clue what is or isn’t an investment contract or security.
He cites an example of Gensler’s imprudent arguments on what security is.
Gensler claims that “if someone is promoting an asset, it transforms the asset into a security,” says Deaton.
He disregards the fact that the acquisition of an asset for purposes other than investing is exempt from the application of U.S. securities regulations.
John Deaton also publicly accused Gary Gensler and the SEC of not following the law, legal tests, and court judgments.
He says, “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 @SECGov website today.”
Deaton’s Main Concern –
The ghastly number of crypto lawsuits filed by the SEC in the US demands the crypto regulatory system be improved as soon as possible.
Gensler’s perspective on securities is based on the notion that any asset being promoted as an investment opportunity should be subject to securities regulations. However, it is essential to note that U.S. securities regulations provide exemptions for assets acquired for non-investment purposes, acknowledging the distinction between investment and utility tokens.
Deaton argues that Gensler’s lack of understanding regarding investment contracts or securities is evident in his handling of the Ripple case. He believes that Gensler’s continued presence in office threatens the fair treatment of not only XRP holders but also the whole crypto community in the US; thereby, he calls for his immediate departure.