XRP Lawyer Deaton Comments on SEC’s Bitcoin ETF Stance: Is This a New Strategy?

Recently, the U.S. Securities and Exchange Commission (SEC) has been adjusting its language and position regarding the spot Bitcoin ETF. Ripple’s XRP attorney, John Deaton, shares his thoughts on what might be driving these shifts. Meanwhile, productive discussions between ETF issuers and the SEC are ongoing, aimed at ensuring necessary changes align with the SEC’s regulations.

But the central question remains: Will these adjustments be enough to secure approval for the spot Bitcoin ETF in the near future?

Why the Shift?

Attorney John E. Deaton, responding to a post on the X social media platform by analyst Scott Melker, addressed the SEC’s noticeable shift in tone and wording concerning the spot Bitcoin ETF.

Scott Melker, known as “The Wolf Of All Street,” shared his observations about these changes, prompting Deaton to share his thoughts.

Should We Continue Hoping?

Deaton expressed surprise and hope regarding the SEC’s evolving perspective. He believes this shift may open doors for the approval of a spot Bitcoin ETF soon. He highlighted the importance of clear rules and how they could benefit investors and the broader cryptocurrency market.

“I’m someone who said I wouldn’t be surprised if the SEC wrote a long dissertation citing data or anecdotal evidence denying a spot Bitcoin ETF again, that wasn’t part of the SEC’s original denial that has been deemed arbitrarily and capricious by the Appellate Court”, commented Deaton.

Deaton thinks Gary Gensler’s take on cryptocurrency hasn’t changed. It is very possible that he still holds cryptocurrency responsible for financing terrorism or other illegal behavior.

Also Read: Bitcoin Price To Hit $42K – $56K with BlackRock’s ETF Approval – Matrixport Research Report

Understanding the Public Impact

Despite Gensler’s personal opinion, Deaton believes that the public defeat in the Grayscale case and federal judges’ criticism of the SEC’s hypocritical, arbitrary, and capricious behavior have had a significant effect on the SEC.

Deaton commented on the causes: “I could be wrong, but I attribute it to the Court loss coupled with the Larry Fink effect.”

Deaton suggests that Gensler may primarily care about the views of institutional stakeholders or contributors. Some members of the crypto community speculate that, once Gensler concludes his time at the SEC, he may follow the paths of former SEC Chair Jay Clayton and former SEC Director Bill Hinman, moving on to significant roles at major financial institutions like Goldman Sachs or BlackRock.

Read More: SEC Should Have Approved Bitcoin ETFs Years Ago: Matt Hougan, Bitwise