Evaluating the SEC’s Shifting Attitude
US attorney John E. Deaton observes a potential change in the SEC’s stance toward the cryptocurrency industry, particularly in light of the agency’s response, or lack thereof, to recent fake BTC ETF news.
A Departure from the Past
Deaton, who represents numerous Ripple investors in their lawsuit against the company, suggests that the United States Securities and Exchange Commission (SEC) may be adopting a different approach to the cryptocurrency sector. He points to the agency’s decision not to exploit the recent fake BTC ETF news as an opportunity to criticize the digital asset space, unlike its previous behavior.
Chairman Gensler’s Shift
In the past, SEC Chairman Gary Gensler consistently criticized cryptocurrencies, often associating them with negative activities such as terrorism funding and criminal behavior.
Influence of Major Institutions
Deaton speculates that Gensler’s shift in behavior might be influenced by the opinions of major institutions. He states, “I could be wrong, but I attribute it to the Court loss coupled with the Larry Fink affect. Gensler only cares about what the major incumbent donors, I mean institutions think.”
This change in the SEC’s approach aligns with the views expressed by Scott Melker, known as “The Wolf of All Streets,” who recently commented on Twitter that the approval of a spot Bitcoin ETF appears imminent due to a shift in language and tone.
Reactions to Recent Developments
On October 16, news broke that the US securities regulator had officially approved BlackRock’s application to introduce a spot BTC ETF in the United States. This news ignited enthusiasm in the crypto community, leading to a rapid surge in the price of Bitcoin, which climbed by over 10% in a matter of minutes, reaching as high as $29,500 (according to CoinGecko).
A Short-Lived Celebration
However, the excitement was short-lived, as it became evident that there was no official approval for the ETF. The SEC also cautioned the public not to unquestioningly trust online information and to verify details from reliable sources.
Different Trust Levels
Deaton disagreed with the SEC’s statement, asserting that he places more trust in independent judges overseeing the SEC than in the agency itself. He cited an Appellate Court’s characterization of the SEC as “arbitrary and capricious.”
Listening to the Judges
In Deaton’s view, the opinions of federal judges concerning the SEC carry significant weight. He noted that a federal judge in the Southern District of New York accused SEC lawyers of hypocrisy and a lack of allegiance to the law. Therefore, when it comes to the SEC, Deaton chooses to heed the voices of the judges, which he believes are speaking loudly.