XRP News: The global cryptocurrency industry is still struggling to recover from the recent Sam Bankman-Fried’s (SBF) FTX collapse. Industry experts have alleged the US SEC and its chair, Gary Gensler for taking irregular steps to protect the market. However, the XRP holders’ lawyer has suggested that there could be more pain ahead for the crypto market.
XRP lawyer questions SEC’s plan of actions
John Deaton, Amicus Curiae in the XRP lawsuit in Twitter Thread highlighted the SEC’s plan of action. He mentioned that the SEC Chair was coming after crypto for 2 years. He added that Gary Gensler doubled the size of the SEC staff dedicated just to crypto.
However, the SEC chair pushed regulations by enforcement in non-fraud cases like Ripple, LBRY, Dragon Chain, BlockFi, and more. He stated that the SEC is the 2nd largest creditor in the BlockFi bankruptcy.
XRP lawyer mentioned that 6 months ago he made a prediction the SEC Chair would target and sue a major exchange for dealing in unregistered securities. Meanwhile, this came out to be true as the commission sued Coinbase, Crypto exchange for selling securities.
However, Deaton believed that this could happen again and that this will directly cause another 50% crypto crash. This will allow the incumbents to gather an even larger share of the market.
Ripple lawyer states bouncing regulating guidelines
Ripple’s General Counsel quoted some statements given by the SEC over the Howey test. He mentioned the commission said that Howey provides a clearly expressed test for determining what constitutes an investment contract on 4/22/21.
Later he picked the latest statement which states that the controversial Hinman Speech provided around 13 non-exhaustive factors that market participants could consider.