#ICYMI<\/a>: New court filings indicate that @SECGov<\/a> Chair Gary Gensler knowingly misled Congress when pressed on the classification of #ETH<\/a> at a @FinancialCmte<\/a> hearing to conduct oversight of his agency.<\/p>\n Read my full statement — Patrick McHenry (@PatrickMcHenry) April 30, 2024<\/a><\/p>\n<\/blockquote>\n In a statement<\/a> on X, Deaton directed public attention to his amicus brief in the Coinbase litigation, emphasizing its significance in illustrating Gensler’s questionable regulatory practices. “With all due respect, it\u2019s time to serve multiple subpoenas on Gary Gensler and the SEC. I encourage everyone to read the Amicus Brief I filed in the Coinbase case. There\u2019s a section in the brief proving Gensler is a bad faith regulator who has infected the entire agency,\u201d Deaton asserted.<\/p>\n The amicus brief itself details accusations against Gensler, presenting a narrative of an SEC that manipulates legal outcomes to fit its agenda, often at the expense of innovation and transparency. Deaton cites multiple instances where federal judges have criticized the SEC for its “win at all costs” approach.<\/p>\n For example, Judge Netburn in a related XRP lawsuit remarked on the SEC\u2019s strategy, stating, \u201cShielding the Court from indisputable truths is a win at all costs strategy and another example of the SEC adopting its litigation positions to further its desired goal, and not out of a faithful allegiance to the law.\u201d<\/p>\n The brief goes further, pointing to specific comments by SEC Commissioner Hester Peirce, who criticized her own agency\u2019s approach to regulation. Peirce noted, \u201cInviting people to come in and talk to us only to drag them through a difficult, lengthy, unproductive, and labyrinthine regulatory process casts the Commission in a bad light and thus makes us a less effective regulator.\u201d<\/p>\n Highlighting the legal and financial ramifications of the SEC’s actions, Deaton’s brief references the agency’s alleged threats to bankrupt companies through litigation\u2014a claim supported by a declaration from the founder of LBRY. \u201cThe SEC’s objective of bankrupting us through the process, which they threatened privately three years ago, they succeeded,\u201d stated the founder, whose experience was documented in court filings.<\/p>\n Moreover, the brief critically examines Gensler’s previous statements, which Deaton argues are contradictory and demonstrate bad faith. Before his tenure at the SEC, Gensler expressed concerns about the lack of regulatory clarity in digital asset markets.<\/p>\n However, as chairman, he has asserted that “the rules related to crypto assets are well-settled” and that “the test to determine whether a crypto asset is a security is clear,\u201d remarks made during his speech at the Aspen Security Forum on August 3, 2021.<\/p>\n These contradictions are at the heart of Deaton’s critique, suggesting a pattern of behavior at the SEC where the truth is less important than the regulatory outcomes the agency seeks to achieve. The brief warns that such behavior not only damages the SEC\u2019s credibility but also has significant implications for the future of digital asset regulation in the US.<\/p>\n XRP Lawyer Community Reacts<\/p>\n Meanwhile, other lawyers from the XRP community have criticized McHenry\u2019s empty words. Marc Fagel, a retired securities lawyer commented<\/a>, \u201cC’mon, John. As a lawyer, you know McHenry’s statement is bogus. The SEC has made no legal determination as to ETH, and GG made no misrepresentations at the hearing. You can disagree with and disdain the guy, but be honest about it.\u201d<\/p>\n![\"👇\"](\"https:\/\/www.bitrabo.com\/discover\/wp-content\/uploads\/2024\/04\/1712412388_192_Forget-Wall-Street-Uniswap-Is-The-New-Trading-King-With.png\")
pic.twitter.com\/8osMpbY6Iu<\/a><\/p>\nDeaton Details Gensler’s ‘Bad Faith’<\/h2>\n
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