John E Deaton – a US attorney who represents thousands of Ripple investors in the lawsuit against the US Securities and Exchange Commission (SEC) – launched another bashing manifest towards the agency’s Chairman – Gary Gensler.
The latter has been criticized for his negative approach to the cryptocurrency industry, with some arguing that the Commission’s stance could push talent outside the States.
Gensler Must Go
Deaton took it to X (Twitter) to claim that the Chairman of the SEC has “no clue” what security is. The agency he is in charge of filed a lawsuit against Ripple in December 2020, accusing the blockchain enterprise of raising funds years ago by selling XRP tokens as unregistered security offerings to retail investors.
However, a court decision from mid-July determined that the sales did not constitute an offer of investment contracts. Apart from striking the SEC’s ambition to win the case, the ruling positively affected XRP’s price, which skyrocketed by over 70%.
Deaton also added that Gensler “completely ignores the fact that the US securities laws do not apply to the purchase of an asset for non-investment use cases,” urging him to vacate his position.
A few days ago, the attorney argued that the regulator could use all its options to postpone the final outcome of the lawsuit but does not see how it could prevail.
“Should an early appeal be granted, it will take another year and a half to two years for the US Court of Appeals for the 2nd Circuit to rule on the issue. If the SEC were to win at the 2nd Circuit, which I believe they won’t, then the case gets remanded back to Judge Torres, who would apply the facts of the case to the other Howey factors not yet analyzed,” he stated.
Gensler’s Reaction to the Lawsuit
The 65-year-old American had the opportunity to give his two cents on the prolonged legal battle between Ripple and the watchdog during congressional testimony last week. Nonetheless, he preferred to remain silent rather than provide any specific details.
On another note, he once again lambasted the cryptocurrency sector, describing the people and companies operating there as “hucksters” and accusing them of misusing customer funds.
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