John Deaton, a prominent pro-crypto lawyer and legal representative of XRP holders, recently drew attention to the ineffectiveness of the United States Securities and Exchange Commission (SEC) to properly regulate the cryptocurrency market. Deaton published his thoughts on Twitter, articulating his view that the Commission fails to live up to its mission of providing clarity and guidance to the crypto industry.

At the core of Deaton's criticism lies the Commission's reliance on cases from decades ago in fulfilling its role. In contrast, he brings up the speech of William Hinman in 2018, which provided the initial stance on cryptocurrencies from the SEC, and the 'investment contracts' framework from 2019, which mentioned that virtual currencies used for payments and as a substitute currency are unlikely securities under the Howey Test. Deaton also asserted that XRP had already been recognized as a virtual currency by multiple governmental bodies.

The implications of Deaton's suggestion are twofold. On one hand, it calls to attention the need for thorough review of the SEC's current regulations, policies, and practices to keep up with the ever-evolving environment of digital assets. On the other, it tacitly implies that the SEC's recent actions against XRP can be questioned due to its failure to address the conflicting statements from previous commissions. As reform in this regard grows in demand, it is likely that the discussion about the efficacy of the SEC's approach to crypto regulation will be more magnified in the near future.



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