In the ongoing legal dispute between Coinbase and the U.S. Securities and Exchange Commission (SEC), XRP advocate John Deaton has accused SEC Chairman Gary Gensler of gaslighting the public and criticizing his stance on the cryptocurrency. I didn’t agree.
These accusations stem from the SEC denying Coinbase’s cryptocurrency rulemaking petition for three reasons: applying current securities laws to cryptocurrencies, the SEC’s participation in the cryptocurrency securities market through rulemaking, and the importance of maintaining the Commission’s discretion in setting rulemaking priorities. It came out in the midst of this.
In a post from X (formerly Twitter), Deaton said: Emphasize Here’s a statement from Gensler explaining the reasons for the SEC’s decision, with the SEC Chairman saying, “There is nothing unique or new about cryptocurrencies.” Gensler added that Coinbase’s rulemaking request relies on its beliefs about asset volatility and the unique nature of the cryptocurrency ecosystem that classifies all assets as securities under current law.
According to Deaton, this position directly contradicts comments made by the SEC Chairman during congressional testimony in early 2023. Deaton recalled Gensler arguing that the unique nature of cryptocurrencies puts them beyond the scope of the committee, creating a regulatory gap.
Deaton said Coinbase’s request relies on the SEC’s view, as previous communications indicate. He noted Gensler’s complete reversal on the cryptocurrency issue, attributing it to political motivation and support from Senator Elizabeth Warren.
Related: SEC Officials Reunite With Spot Bitcoin ETF Filers
The SEC is sending a variety of signals about its approach to the cryptocurrency ecosystem, whether through Gensler’s words or through the committee’s actions in general.
Regulators have rejected an appeal of the loss to Grayscale Investments as its legal battle with Coinbase and Binance continues. The case involves the company’s attempt to convert the Grayscale Bitcoin Trust into a cash exchange-traded fund.
magazine: Cryptocurrency Regulation — Does SEC Chairman Gary Gensler have the final say?