Pro-XRP Lawyer Agrees SEC Sued Binance and Coinbase to Allow Wall Street to Catch Up

Attorney Deaton joins other investors to allege that the SEC sued Binance and Coinbase so that Wall Street could catch up with crypto.

Cryptocurrency enthusiasts have continued to allege that the SEC’s widespread crackdown against crypto businesses was to pave the way for United States-based financial firms.

Interestingly, CryptoLaw founder attorney John Deaton also shares this sentiment. Attorney Deaton agreed with Bitcoin proponent Preston Pysh’s tweet, alleging that SEC’s lawsuit against Coinbase and Binance was part of an effort to allow Wall Street firms to catch up with crypto.

Pysh pointed out that large United States financial institutions like BlackRock, Citadel Securities, and Fidelity Digital Assets are all applying for Bitcoin ETFs and spot exchanges a few days after the SEC sued Binance and Coinbase.

Consequently, Pysh noted that this past year had been a massive inside job between Wall Street parasites and government regulators to allow these financial institutions to catch up.

Pysh Said: “I’m sorry, but it’s hard not to see the past year as a coordinated inside job between Wall Street and regulators. Blackrock, Fidelity, Citadel, Schwab, and Deutsche Bank all applied for Bitcoin ETFs right after SEC’s actions against Binance and Coinbase. It feels like a catch-up strategy orchestrated by Wall Street parasites and government regulators.”

In response, attorney Deaton said, “I think I agree.” The pro-XRP lawyer attached a short video clip of an interview where he commented on the matter.

According to Deaton, SEC Chair Gary Gensler’s attack on the industry allowed Wall Street to enter and crash the market.

I think I agree pic.twitter.com/3pF2yECSQv

— John E Deaton (@JohnEDeaton1) June 22, 2023

Custodia Bank CEO Shares Same Sentiment

Aside from Deaton and Pysh, other influential personalities in the industry are also making similar claims. Earlier this week, Caitlin Long, CEO of Custodia Bank, said it is not a coincidence that Wall Street firms are entering the crypto space amid SEC’s widespread crackdown.

“All of a sudden, we’ve got these big Wall Street firms that are coming into crypto right after the runway’s been cleared,” Long said in a recent interview.

Wall Street Firms Enter Crypto Amid SEC’s Crackdown

Recall that the United States SEC sued the two-largest crypto exchanges- Coinbase and Binance, earlier this month. The SEC accused the exchanges of facilitating the trading of unregistered securities in the United States. The regulator also labeled more than 15 crypto assets as securities through the lawsuits, including ADA, SOL, MATIC, and BNB.

Shortly after the SEC sued Binance and Coinbase, some of the largest U.S. financial firms made moves to offer crypto-related services.

On Tuesday, the industry saw the launch of a new crypto exchange dubbed EDX Markets (EDX). Backed by Fidelity Digital Assets and Citadel Securities, the exchange offers four cryptocurrencies- bitcoin (BTC), Ethereum (ETH), bitcoin cash (BCH), and Litecoin (LTC). 

Before EDX’s launch, BlackRock, the world’s largest asset manager, applied for a license to launch a spot Bitcoin exchange-traded fund (ETF). Interestingly, WisdomTree also applied with the SEC, seeking approval for a Bitcoin ETF. 

Notably, the SEC has not yet approved the launch of a spot Bitcoin ETF. Whether BlackRock or WisdomTree will be the first firms to launch spot Bitcoin ETFs remains to be seen.