Advertise
Elena R
Elena R
Author
Elena is an expert in technical analysis and risk management in cryptocurrency market. She has 10+year experience in writing - accordingly she is avid journalists with a passion towards researching new insights coming into crypto erena.
- Nov 30, 2023 13:05 UTC
-
Is the SEC Playing Favorites with Bitcoin and Ethereum?
The SEC sued Ripple in December 2020, alleging that XRP was sold as an unregistered security.
The CEO of Ripple believes that the SEC is trying to limit US innovation in the crypto industry to BTC and ETH.
OneRiver made a $1B bet on BTC and ETH two months before the SEC sued Ripple.
In a series of tweets, John Deaton, a pro-XRP advocate, sheds light on potential conflicts of interest within the U.S. Securities and Exchange Commission (SEC). He specifically examines the actions of former SEC Chairman Jay Clayton and the SEC’s approach to cryptocurrencies like Bitcoin (BTC), Ethereum (ETH), and Ripple’s XRP.
As the primary regulator of U.S. financial markets, the SEC is increasingly involved in overseeing the cryptocurrency sector. Its decisions hold significant sway over market dynamics and the legal status of various digital assets.
Ripple’s Case: A Closer Look
John Deaton points out that during Clayton’s final days in the SEC, a significant enforcement action was launched against Ripple, alleging that XRP was sold as an unregistered security. Some have criticized this move as selectively targeting Ripple while giving a ‘free pass’ to other cryptocurrencies like BTC and ETH.
Before leaving the SEC, Clayton witnessed a substantial $1 billion investment in BTC and ETH by OneRiver, a firm he later joined. Clayton’s law firm, Sullivan & Cromwell, had ties to ConsenSys and Joseph Lubin, key figures in the Ethereum ecosystem. This firm played a role in ConsenSys’ acquisition of JP Morgan’s Quorum.
A Vested Interest
William Hinman, former Director of Corporation Finance at the SEC, admitted contacting Joe Lubin of ConsenSys to discuss ETH. Deaton suggests that Clayton’s persistent inquiries imply a vested interest.
Deaton argues that if Ripple had engaged Sullivan & Cromwell for representation, the lawsuit might have been avoided during Clayton’s tenure, underscoring the role of legal representation in regulatory decisions.
A Call for Fair Play
These serious allegations raise questions about the fairness and integrity of the SEC’s regulatory actions. Deaton emphasizes that legal representation should not unduly influence decisions, advocating for a level playing field in the cryptocurrency market.
Read More: XRP Lawsuit: Insights from Senior Counsel on Ripple vs SEC Settlement
The implications of these allegations are significant, casting a shadow on the SEC’s impartiality in regulating the crypto market. Ensuring a fair and transparent regulatory approach is crucial for the authorities’ credibility and the crypto market’s health.
Yes 
No 
