At the fiery start of the week, the crypto space is juggling with talks of crypto risk and the urgent need to implement crypto rules. XRP supporter John E. Deaton has joined the conversation about new crypto laws, which got a boost from Treasury Secretary Janet Yellen. Deaton thinks Bitcoin, Ethereum, and XRP shouldn’t be labeled as securities, and he’s explaining why.
Let’s find out his reasons below.
In response to Treasury Secretary Janet Yellen’s renewed push for crypto legislation in the US, Deaton has defended Bitcoin (BTC), Ethereum (ETH), and Ripple’s XRP against claims of being securities.
Deaton points to recent developments, such as the approval of spot Bitcoin ETFs by the SEC, as evidence of Bitcoin’s legitimacy. Similarly, Ethereum’s approval for futures ETFs and BlackRock’s application for a spot Ethereum ETF indicate Ethereum’s non-security status. Deaton argues that Judge Analisa Torres’s ruling that XRP offered to retail investors is not security further solidifies XRP’s position.
Read More: Grayscale CEO Eyes Options for Spot Bitcoin ETF, Urges SEC Approval
Coinbase Lawsuit Impact
With the security status clarified for BTC, ETH, and XRP, attention now turns to the ongoing Coinbase lawsuit with the SEC, a potential game-changer for future crypto legislation.
While Deaton defends legitimacy, Treasury Secretary Janet Yellen warns of broader crypto risks. Comparing the FTX case to the Lehman Brothers crisis, Yellen urges Congress to strengthen existing regulations and enact new ones, especially for stablecoins and non-security crypto-assets.
Across the pond, the European Union (EU) is gearing up to establish clear crypto rules. The European Securities and Markets Authority (ESMA) seeks public input on standards under the Markets in Crypto-Assets (MiCA) regulation, setting strict rules for foreign crypto firms in the EU.
Janet Yellen’s recent remarks trigger another development: the SEC unveils a 247-page rule book to ensure the safety of crypto investors. Focused on DeFi and liquidity providers, these rules mandate adherence to federal laws for those involved in crypto transactions.
Within the crypto community, discontent brews. Critics argue these rules may stifle innovation in the decentralized finance (DeFi) space. Commissioner Hester Peirce questions the rules’ compatibility with automated market makers (AMMs), sparking a heated debate on balancing crypto safety and fostering new ideas.
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