Attorney John Deaton has asserted that the U.S. Securities and Exchange Commission’s (SEC) aggressive attitude towards cryptocurrency-related businesses will not see them win any court cases. The pro-XRP lawyer made this known following a tweet by former SEC enforcement official John Reed Stark, a tweet which highlighted the SEC’s crackdown on crypto-based exchanges.

In response to Stark’s tweets, Deaton cited four occasions in which Judges had found the SEC’s arguments to be without merit. Deaton argued the Judge in the Ripple lawsuit admonished the SEC for a lack of faithful allegiance to the law, while the Judge in the LBRY v. SEC lawsuit scolded the Commission over the lack of regulatory clarity. The Grayscale lawsuit’s Judge said the SEC’s reasoning made no sense, and the Judge in the Voyager lawsuit criticized the agency’s ethical conduct.

While the moves of the SEC have sparked concerns among industry practitioners of the agency stifling innovation, the Commission continues to press forward with its enforcement actions. On April 17, the SEC charged Bittrex, a popular cryptocurrency trading platform, and its founder with operating an unregistered national securities exchange.

Regardless of the SEC’s current attitude, attorney John Deaton believes the organization will not be victorious in the long run. In Deaton’s view, the Judge’s decisions in several recent cases provide examples of the folly of the Commission’s strategies against crypto-based companies. The lawyer expects that if the agencies continues along the same path, the results will remain the same. It remains to be seen what other steps the SEC takes against crypto-related companies as the agency continues to seek to protect consumer interests.



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