Originally published on: September 14, 2024
Renowned crypto advocate and Senate hopeful, John Deaton, has raised concerns over the Securities and Exchange Commission’s (SEC) heavy-handed approach towards the cryptocurrency market, resulting in small investors facing a significant loss of over $15 billion.
Critics have often accused the US securities watchdog of excessive regulation within the crypto space, leading to detrimental consequences for retail participants.
Deaton, a lawyer and Republican candidate for the US Senate, has called out the SEC for what he describes as “gross overreach,” holding them responsible for the substantial financial losses suffered by investors, as detailed in a recent post by him on X.
The lawyer further expressed his commitment to hold the SEC accountable for its regulatory actions, especially since Senator Elizabeth Warren has not taken a firm stance on the matter.
Following his victory in the Massachusetts primary election, Deaton is set to go head-to-head against Democrat Elizabeth Warren in the upcoming November elections.
In a surprising turn of events, the SEC appears to be revising its position on cryptocurrencies as securities. In a recent court filing shared by Coinbase’s chief legal officer, Paul Grewal, the SEC clarified that cryptocurrencies themselves are not considered securities.
This stance marks a departure from the SEC’s previous classification of tokens such as XRP as securities, a point emphasized by Deaton in his critique.
Notably, the SEC recently reached a settlement with eToro, resulting in the trading platform’s US operations halting trading for most crypto assets and paying a hefty $1.5 million fine.
The regulatory body has significantly ramped up its enforcement efforts in the crypto sector, imposing a record-breaking $4.7 billion in enforcement actions against firms and executives in 2024, representing a staggering surge compared to previous years.
The SEC’s notable $4.47-billion settlement with Terraform Labs and its former CEO in June stands as a key highlight of its intensified enforcement measures in the crypto space.
With the SEC’s enforcement actions hitting an all-time high, it is evident that the regulatory landscape for cryptocurrencies is evolving rapidly, impacting investors and industry participants alike.
