Attorney Deaton offers new strategy for dealing with the SEC – Cryptopolitan

John Deaton, a prominent attorney representing XRP holders, has recently offered a unique piece of advice to companies operating within the digital currency sector on interacting with the United States Securities and Exchange Commission (SEC). This counsel came as a response to a post by Ripple CTO David Schwartz, who outlined three key strategies for dealing with the SEC, led by Gary Gensler.

Adding to Schwartz’s approach, Deaton emphasized a fourth strategy, advising firms to refrain from cooperating or communicating with anyone from the SEC. He stressed that any inquiries or requests from the SEC should be directed to the companies’ legal representatives. In the event of receiving a subpoena, immediate compliance is discouraged; instead, contacting an attorney is recommended.

This advice stems from the SEC’s ongoing confrontations with various firms in the digital currency industry, including those seeking regulatory clarity. Notable examples include Ripple Labs Inc. and Coinbase Global Inc., both of which have experienced legal battles with the SEC. Despite its efforts to seek clarity on whether XRP is considered a security, Ripple faced a lawsuit from the commission, which is still ongoing.

Similarly, Coinbase has also encountered challenges with the SEC and filed a counter-lawsuit against the regulator due to a lack of regulatory clarity in the United States. These instances illustrate the SEC’s reluctance to provide clear guidelines to crypto firms legitimately requesting proper rulemaking.

Moreover, the executives at Ripple have asserted that they have persistently sought the SEC’s guidance to ascertain the classification of the XRP coin. However, instead of receiving clear rulemaking or any form of clarity, the company was embroiled in a lawsuit.

Additionally, the ongoing struggles between the SEC and crypto firms underscore the pressing need for clear and concise regulatory frameworks. The lack of such frameworks has led to increased tensions and legal battles, hindering the growth and development of companies within the digital currency ecosystem.