Gensler’s focus on RippleXRP reveals SEC’s intention to broaden oversight
John DeatonThe founder of Crypto Law criticized the SEC’s overreach in an op-ed that appeared on Fox Business. According to Deaton, Securities and Exchange Commission Chairman Gary Gensler has sought to extend the agency’s authority beyond the limits permitted by law.
Highly recommended reading@JohnEDeton1The article Briefly Explains the Disadvantages of the SEC Chair @garrigensler The crypto side continues to do and maintain.
The SEC harms investors and creates a chaotic market by not providing regulatory clarity. https://t.co/vdra1tJjoB
— Moonchaser (@Moonchaser2020) 21 August 2022
He noted how, barring Congressional action, the Commodity Futures Trading Commission (CFTC), the primary regulator of investments that are not treated as traditional securities, has an upfront responsibility for regulating digital assets. This could mean that the SEC has limited jurisdiction over the cryptocurrency industry.
The Supreme Court issued its famous Howe Criterion Decision in 1946, which outlines a four-part test to establish eligibility as an investment contract.
Deaton went on to say that since Howe, Congress has been unable to enact any new legislation that would directly regulate cryptocurrencies. This should mean that Congress intended the CFTC to act as the de facto regulator of the cryptocurrency industry.
They claim that SEC Chairman Gary Gensler has used this perceived lack of clarity by enforcement to launch a campaign of regulation that has driven Howe to breaking point.
Ripple lawsuit: “There’s a lot at stake”
In December 2020, Jay Clayton opened the Ripple case on his last day as SEC chairman. The SEC filed charges against Ripple executives for allegedly selling XRP in a way that would have qualified it as a security under Howey because the proceeds were used to support Ripple’s business development, according to the SEC. was. As a result, they were required to “disclose” information about those sales to investors just as a public business would.
John Deaton previously mentioned in a tweet that XRP is by far the most important altcoin in the crypto market as a result of the SEC’s action.
He explained that if Ripple Labs loses the case, it could be dangerous for all other cryptocurrencies as they could be labeled “unregistered securities” by the SEC.
According to the recently updated schedule and as reported by U.Today, the summary decision briefing is expected to begin next month.