Deaton has long advocated for clarity in how the SEC regulates cryptocurrencies, arguing that the agency’s actions have often been inconsistent.
He pointed to the SEC’s refusal to provide clear guidance on XRP, which led to a prolonged legal battle.
“All I asked was for the SEC to honor the law and make clear that the token itself (XRP) was NOT the security. The lawyers at the SEC not only refused to do so, but they attacked me personally,” Deaton remarked.
SEC Settles with eToro #settlements
Meanwhile, the regulator recently settled a case with trading platform eToro, forcing its U.S. operations to cease trading in nearly all crypto assets and imposing a $1.5 million fine.
This is just one example of the SEC’s ramped-up enforcement efforts in 2024.
According to a Sept. 9 report from Social Capital Markets, the SEC’s total monetary enforcement actions against crypto firms in 2024 had surged to $4.7 billion, a 3,000% increase from the previous year.
The regulator’s largest action came in June, when it reached a $4.47 billion settlement with Terraform Labs and its former CEO, Do Kwon, marking the SEC’s most substantial crypto enforcement to date.
Just recently, a coalition of seven U.S. states came together to challenge the SEC’s regulation of cryptocurrency.
Led by Iowa Attorney General Brenna Bird, the states have filed an amicus brief arguing that the SEC’s attempt to regulate cryptocurrencies constitutes a “power grab” that would stifle innovation, harm the crypto industry, and exceed the agency’s authority. #AuthorTool
