Attorney John Deaton has issued a warning about the Securities and Exchange Commission’s approach to cryptocurrency regulation.
Deaton highlighted the potential implications for XRP, Cardano, and the broader crypto market. During a recent Thinking Crypto interview, Deaton addressed the possibility of settlement in ongoing regulatory cases while drawing attention to Senator Elizabeth Warren’s proposed legislation.
Deaton expects a regulatory war
Deaton dismissed speculation about potential settlements in crypto-related SEC cases, characterizing the current situation as “a war.”
He pointed to Senator Warren’s recent bill, which he argues effectively amounts to a Bitcoin ban through its requirements for node validators to comply with anti-money laundering policies.
“How do you know your customer if you’re validating a transaction on a decentralized ledger? You can’t,” Deaton emphasized, highlighting the practical impossibility of implementing such requirements.
The attorney expressed skepticism about the SEC’s willingness to differentiate between various cryptocurrencies in potential settlements. “Is the SEC going to say, okay, well, let’s come to grips and agree that XRP sold on exchanges is not a security, but Cardano is? I don’t see it,” Deaton stated.
According to Deaton, the only factor that might prompt settlement discussions would be a successful motion to dismiss by Coinbase in its ongoing case. Without such a development, he believes the industry remains locked in a regulatory conflict.
The ongoing regulatory challenges facing both XRP and Cardano illustrate the broader uncertainty in the cryptocurrency space, especially in the US.
Source: https://www.cryptonewsz.com/deaton-secs-crypto-plan-compares-xrp-cardano/