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TL;DR
- US attorney John E Deaton observed a possible change in the SEC’s perspective regarding the cryptocurrency sector, particularly after the agency refrained from using the recent false BTC ETF news to criticize the industry.
- Previously, SEC Chairman Gary Gensler often linked cryptocurrency to illicit activities. Deaton proposes that Gensler’s actions may be swayed by the views of significant institutions.
- Despite a rumor suggesting that the SEC had approved BlackRock’s BTC ETF application, which led to a price increase, the approval was untrue. Deaton expressed greater confidence in the judges overseeing the SEC than in the agency itself.
The SEC Appears Different
John E Deaton – a US attorney representing numerous Ripple investors in the lawsuit against Ripple – speculated that the United States Securities and Exchange Commission (SEC) may have altered its position towards the cryptocurrency sector. He based his hypothesis on the observation that the agency did not seize the opportunity presented by the recent false BTC ETF news to criticize the digital asset industry.
Deaton pointed out that this was not the case previously, as SEC Chairman Gary Gensler often condemned cryptocurrency and associated it with terrorism financing and criminal behavior whenever he had the chance.
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“I could be mistaken, but I attribute it to the Court loss coupled with the Larry Fink effect. Gensler is primarily concerned with the opinions of major incumbent donors, I mean institutions.”
The attorney’s view regarding the SEC’s more lenient approach aligns with that of Scott Melker, widely known as “The Wolf of All Streets.” Melker recently stated in a post on X (Twitter) that the approval of a spot Bitcoin ETF is imminent, noting that “the language and tone have changed.”
Deaton’s Earlier Response to the SEC
The breaking news on October 16 that the US securities regulator had finally approved BlackRock’s application to launch a spot BTC ETF in the United States generated excitement in the crypto community, with the entire market turning green. The price of the leading digital asset, for instance, surged by over 10% within minutes, reaching as high as $29,500 (according to CoinGecko).
However, the excitement was short-lived as it was revealed that no such official approval had been granted. The SEC also contributed by advising the public to be cautious about believing everything they read online and to verify information with original sources.
Deaton disagreed with this assertion, arguing that independent judges overseeing the regulatory body are more reliable than the agency itself. He subsequently noted that an Appellate Court deemed the SEC to be “arbitrary and capricious:”
“Finally, a federal judge in the SDNY labeled the SEC lawyers as hypocrites and stated they lacked faithful allegiance to the law. Therefore, regarding the SEC, I prefer to heed the judges. And indeed, they are speaking quite loudly.”
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