The U.S SEC recently launched investigations over digital assets companies have raised questions over its approach towards the industry. Experts suggest that the Commission’s Chair has too much on his plate to be messing with the market.
SEC has too much on its plate?
John Deaton, founder of CryptoLaw and lawyer of XRP holders in SEC Vs Ripple lawsuit has penned an op-ed over Watchdog’s overreach. He mentioned that as the crypto industry is evolving many first time investors are jumping into the space. However, he suggested that the crash in SPACs signals that the SEC chair has many sectors to be messing with.
As per the report, Deaton mentioned that SEC Chief Gary Gensler has even called the crypto market the “Wild West” of investing. Gensler believes that these assets are used for some illegal activities. Meanwhile, the majority of money laundering and fraud occurs using the greenback.
XRP lawyer said that power grabbing seems to be the thing of the SEC chair. The Commission chief has given limited input to the public over their rule making. However, it has grown the environmental (ESG) data disclosure requirements.
He added that this move will allow the SEC to progress its social agenda. This might also help them to secure a broader task in the Biden administration.
No new legislation introduced for crypto
Deaton suggested that SEC Chair’s fight against crypto might be his most dangerous and ambitious insult to constitutional norms. He highlighted that in every case since the Howey test found out that security involves an actual contract of relations between seller and buyer.
Earlier, Coingape reported that XRP lawyer suggests that the SEC commissioner might by dodging an internal inquiry over its past activities.
He also highlighted that Congress has failed to form any new law that directly involves regulating digital assets. Still, the SEC Chair has used the faulty clarity to go after the Crypto industry.