Attorney John Deaton recently spoke at the first annual onXDC Live blockchain industry conference in Texas. He highlighted the importance of accountability within regulatory bodies. He draws attention to Gary Gensler and the SEC, emphasizing the importance of holding not just new figures like Gensler responsible, but also previous ones, notably Jay Clayton.
Deaton believes that this accountability is essential to maintain fairness and consistency in regulatory actions.
In Deaton’s view, Clayton’s tenure could have witnessed different outcomes, particularly in the context of the “Safe Harbor” proposal for cryptocurrencies. He highlights a missed opportunity in 2020 when Clayton, equipped with a majority vote from Commissioners, could have passed a Safe Harbor initiative. Such an initiative, if enacted, might have provided a more structured framework for digital asset regulation.
During the discussion, the statute of limitations for William Hinman, a former SEC official, is brought up. Deaton clarifies that while Hinman might be shielded from SEC repercussions due to the statute of limitations, he could still face civil lawsuits.
The attorney looks into the Ripple case and talks about how the legal fight is complicated. He imagines different things that could happen like SEC people going to court or Ripple and the SEC making a deal. He says that what happens might be influenced by how the SEC thinks about other cryptocurrencies, especially in the Coinbase case.
Turning to the future, Deaton highlights the urgency of regulatory clarity. He points out that the absence of clear guidelines and regulations pushes the crypto industry offshore, a trend he believes could change if positive developments emerge from cases like Ripple’s.
“I have 75,000 emails or email names of XRP homies and I’m telling you, I don’t care how tough you are, if you read some of these people’s stories that got killed financially, it’ll break your heart,” he said.
