Attorney John Deaton, the prominent figure behind Crypto Law, has been consistently vocal in his criticism of the US Securities and Exchange Commission (SEC). As a pro-XRP lawyer, Deaton has raised concerns about the SEC’s failure to establish a transparent regulatory framework, particularly in its handling of the XRP case.
In a recent development, Deaton has slammed the SEC for its inability to provide a definitive opinion on whether syndicated loans are securities.
What are Syndicated Loans?
Syndicated loans, also known as syndicated bank facilities, are a form of financing where a group of lenders, called a syndicate, collaboratively provides funds to a single borrower, which could be a corporation, a significant project, or a government entity. Such loans may involve a predetermined sum of money, a line of credit, or a combination of both.
The SEC’s indecisiveness in defining whether syndicated loans should be categorized as securities arose due to multiple requests for more time to present its position to the court.
SEC’s “Broken Institution”
In a tweet expressing his discontent, Deaton unequivocally refers to the SEC as a “broken institution.” He contends that the commission’s refusal to offer clear guidance not only confuses market participants but also hinders the decision-making process for appellate courts.
Read More: SEC’s Gary Gensler expanding authority over cryptocurrency industry despite opposition
According to Deaton, this lack of clarity fosters an environment where the SEC can potentially prosecute anyone or anything in the future. Consequently, he advocates for a comprehensive overhaul of the agency to address these issues.
Deaton further highlighted that it should be remembered that the Office of General Counsel advised Hinman against declaring Ethereum (ETH) as a non-security.
Related: Did Ethereum Purchase a Free Pass From Hinman? Ripple-SEC Lawsuit Takes a Shocking Twist
This advice was not based on the belief that ETH was actually security or due to concerns about unfair favoritism, but rather because such a declaration might restrict the SEC’s ability to take action against ETH in the future. Deaton thinks this attitude is disgraceful.
Source: https://coinpedia.org/news/deaton-slams-sec-calls-for-regulatory-overhaul-amid-syndicated-loan-controversy/