Chairman of the US Securities and Exchange Commission (SEC), Gary Gensler, finds himself at the center of public criticism and demands for resignation following a contentious hearing before the US House Financial Services Committee.
During the hearing, Gensler’s handling of important issues was met with widespread disapproval from both experts and the general public. Many expressed frustration over what they perceived as his evasion of crucial questions and concerns.
Prominent barrister and legal representative for Ripple’s XRP owners, John Deaton, took to Twitter to voice his strong critique of Gensler’s performance, even going as far as calling for Gensler’s resignation.
Deaton stressed that Gensler’s previous association with MIT (Massachusetts Institute of Technology) held little relevance in his eyes, asserting that Gensler lacked a fundamental understanding of the distinctions between an investment contract and a security.
Deaton cited Gensler’s controversial argument that “if someone promotes an asset, that turns the asset into a security.” According to Deaton, this perspective disregards the critical nuances outlined in US securities regulations, which exempt assets acquired for non-investment purposes.
Moreover, Deaton publicly accused Gary Gensler and the SEC of disregarding established law, legal tests, and court rulings. He pointed out, “More importantly, he doesn’t care what the law says. The SEC has publicly acknowledged that it ignores the joint venture factor of the Howey test. It’s on the @SECGov website today.”
Deaton’s primary concern revolves around the significant number of crypto-related lawsuits initiated by the SEC in the United States. He believes that this surge in legal actions underscores the urgent need for comprehensive reform and improvement within the crypto regulatory landscape.
Gensler’s perspective, which broadly categorizes any asset promoted as an investment opportunity as subject to securities regulations, has raised substantial apprehensions within the crypto community. Deaton argues that Gensler’s lack of comprehension of the complexities surrounding investment contracts and securities is evident in his approach to the Ripple case.
John Deaton’s call for Gensler’s resignation stems from his conviction that Gensler’s continued leadership at the SEC poses a threat not only to the equitable treatment of XRP holders but also to the broader crypto community in the United States. This controversy highlights the ongoing debate over regulatory approaches to cryptocurrencies and their implications for the industry.
