Pro-XRP Lawyer Reacts to EU Approval of New Crypto Licensing Rule, Slams Gary Gensler

Attorney Deaton says Gensler won’t answer questions on whether he considers Ethereum a security. 

Policymakers around the world have continued to take significant steps toward regulating crypto-related activities within their environments. 

In a CNBC report today, lawmakers in the European Union voted in favor of a new cryptocurrency licensing regime, dubbed MiCA. According to the report, a total of 517 lawmakers voted in support of the new crypto licensing regime, while 38 lawmakers voted against it. 

Similarly, the European Parliament also supported a separate law known as the Transfer of Funds regulation. The law requires crypto exchange operators to identify their customers in order to curb money laundering activities. 

Following the development, the European Union has become the first major jurisdiction in the world to introduce a comprehensive law for crypto. 

Attorney John Deaton Reacts 

The development has stirred a debate among cryptocurrency community members, with some people calling out United States lawmakers for lagging behind in the context of establishing clear crypto regulations. 

– Advertisement –

Attorney John E. Deaton, the founder of CryptoLaw and a pro-XRP lawyer, joined other crypto community members to react to the EU approval of a new crypto licensing regime. 

Reacting to the development, Deaton said SEC Chair Gary Gensler may finally have to answer whether he considers Ethereum a security. The pro-XRP lawyer added that the SEC boss would not answer the question. 

Meantime in the United States @GaryGensler May finally answer the question whether he considers #ETH a security. Oh wait… no he won’t. https://t.co/YzviEotMA0

— John E Deaton (@JohnEDeaton1) April 20, 2023

Deaton’s comment indicates that while other regions are establishing clear crypto rules, US lawmakers are still asking the SEC boss to comment on whether he considers the second-largest cryptocurrency a security. 

Recall that Gensler testified before the US House of Representative Committee on Financial Services on April 18. One of the biggest questions of the Congressional hearing was raised by Congressman Patrick McHenry, who asked the SEC boss whether Ethereum was a security. 

Gensler did not give a yes or no answer. Instead, he stylishly made unnecessary comments to avoid answering the question. 

Gensler Says Crypto Rules Are Clear 

Crypto stakeholders have been calling on the SEC to provide clear rules to enable crypto businesses to thrive. However, Gensler, who believes that most crypto assets are securities, has reiterated that crypto market rules already exist but that the industry is still rife with non-compliance. The SEC boss echoed similar views during his recent congressional hearing: 

“Nothing about the crypto markets is incompatible with the securities laws. As I’ve said numerous times, the vast majority of crypto tokens are securities.” 

– Advertisement –