Gensler’s Focus on RippleXRP Reveals Intent to Expand SEC Oversight
John Deatonthe CryptoLaw founder criticized the SEC for overreach in an op-ed published in Fox Business. have sought to expand the Authority’s authority.
I recommend reading it ✨@John Eddieton1article succinctly portrays the SEC chairman’s harm @GaryGensler Continuing towards encryption and perpetuity.
The SEC hurts investors and creates chaotic markets by not clarifying regulations. https://t.co/vdra1tJjoB
— Moonchaser (@Moonchaser2020) August 21, 2022
He said the Commodity Futures Trading Commission (CFTC), the primary regulator of investments not considered traditional securities, has frontline responsibility for regulating digital assets, except for congressional action. I mentioned that This could mean that the SEC has limited jurisdiction over the cryptocurrency industry.
The Supreme Court issued its famous Howey Criteria decision in 1946, outlining a four-part test to establish eligibility as an investment contract.
Deaton went on to say that since Howie, Congress has been unable to enact new legislation directly regulating cryptocurrencies. should mean that it is intended to be
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He alleges that SEC Chairman Gary Gensler used this lack of clarity to launch a campaign of law enforcement regulation to drag Howey to breaking point.
Ripple Lawsuit: ‘Many Are at Risk’
In December 2020, Jay Clayton launched the Ripple case in his final days as SEC Chairman. Ripple executives accused him of selling XRP in a way that would qualify as a security under Howey, according to the SEC, according to the SEC. was indicted. As a result, we had to ‘disclose’ information about the sale to investors, just like we do for public companies.
John Deaton previously tweeted that XRP has become the most important altcoin in the cryptocurrency market as a result of the SEC’s challenge to it.
He pointed out that if Ripple Labs loses, it could be classified as an “unregistered security” by the SEC, which could be dangerous for all other cryptocurrencies.
According to a recently updated schedule and a report by U.Today, the judgment briefing is set to begin next month.
