John Deaton stands corrected amid the latest strange turn of events.
The latest turn of events has seen the Securities and Exchange Commission deny that it has issued an official statement regarding the nature of Ether or Bitcoin.
Ripple and its co-defendants have collected numerous data from SEC officials in text, audio and video that suggest otherwise, but the agency insists these are just personal opinions.
XRP Holders attorney John Deaton recently commented on the conditions needed for a win-win situation for both Ripple and the SEC.
In particular, the importance of two rulings and a bull market to convert XRP into the only altcoin with regulatory clarity in the US, while allowing the Securities and Exchange Commission to post a huge amount on settlement.
According to John Deaton’s theory, if Ripple wins the SEC lawsuit, only Bitcoin and XRP will be safe from the securities regulator. His statement can be found here.
Since those words, the SEC said it has not officially declared BTC and ETH as compatible cryptocurrencies, although there have been several public videos showing the highest SEC numbers, including Bill Hinman and former SEC chief Jay Clayton explicitly commenting on the two coins. On behalf of the agency, not to mention Hinman’s famous 2018 speech.
This appears to be a strange turn of events, if true, John Deaton would still be correct regarding his prediction: Bitcoin is no longer safe from potential SEC enforcement action.
Unsettled positions by the SEC could influence Judge Sarah Netburn’s decision to rule in favor of Ripple’s proposal to force the SEC to hand over documents on their ideas about BTC, ETH and XRP.
Such a ruling would be crucial to a potential win in the fair notice defense and could lead to John Deaton’s anticipation, except for the bitcoin portion.
This change of opinion adds to the confusion over the regulatory framework for digital assets, although SEC President Gary Gensler says there is clarity.
Yesterday, Securities and Exchange Commission Commissioners Hester Pierce and Elad Roesman criticized SEC Chairman’s agenda for failing to enhance investor protection by not providing more clarity on digital assets.
First, the agenda does not mention any regulation regarding digital assets. In the past several years, this sector has grown in size, complexity, diversity, and investor interest. Rather than taking on the difficult task of crafting rules to allow investors and regulated entities to interact with digital assets, including digital asset securities, the agenda suggests — through its silence on cryptocurrencies — that the market can anticipate persistent questions about the enforcement of our securities laws. This area of increased investor interest. Such silence encourages fraudsters and discourages conscientious participants who want to comply with the law.”