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XRP Lawyers Laugh at the SEC’s Analogy for Crypto Investment 

Published 20/01/2024, 07:26
XRP Lawyers Laugh at the SEC’s Analogy for Crypto Investment 
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  • Stuart Alderoty slams SEC for their ‘laughable’ analogy of an ecosystem of oranges for cryptocurrencies.
  • When the SEC marked Bitcoin as a non-security, the reason put forward was that Bitcoin doesn’t own a network.
  • John Deaton criticizes the SEC, stating that are not stupid, but they lack integrity.

XRP advocate John Deaton, who has gathered attention with his fierce comments against the Securities and Exchange Commission (SEC), has reinforced his discontent with the regulators’ policies. In a recent X post, Deaton asserted that the SEC is not “stupid” but “just lack[s] integrity.”

Deaton’s tweet came in response to a post shared by Stuart Alderoty, the Chief Legal Officer at Ripple. On January 19, Alderoty criticized the commission for their “laughable” legal arguments, referring to the historical Howey case.

In the Howey oral argument, as per Aldertoy’s tweet, the SEC used an analogy of “oranges” to assert that investing in cryptocurrencies is similar to investing in an “ecosystem of oranges.” According to Alderoty, the SEC attempts to prove that crypto tokens are not just collectibles but keys to an underlying business enterprise. In detail, when a trader buys a crypto, he becomes a part of a larger network the crypto is a part of.

Meanwhile, Deaton shed light on the regulators’ alleged preference for Bitcoin. The SEC was questioned when they marked Bitcoin as a non-security while tagging many leading altcoins, including XRP, ADA, and SOL, as securities. As a clarification, the SEC asserted, “Bitcoin doesn’t have a network.” Reflecting on the matter, Deaton wrote,

SEC enforcement lawyers are not that stupid. They just lack integrity. It’s as if they “lack a faithful allegiance to the law.

In his tweet, Alderoty pointed out that the SEC’s views on cryptocurrencies have “strayed so far” from the established laws. He added that if their policies weren’t harmful and “damaging” for the crypto environment, they could have been considered a “laughable” matter.

The post XRP Lawyers Laugh at the SEC’s Analogy for Crypto Investment appeared first on Coin Edition.

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