An Unconventional Move by the SEC?
Pro-XRP lawyer John E Deaton notices a shift in the SEC’s approach to the cryptocurrency industry, particularly its decision not to capitalize on recent fake BTC ETF news to criticize the sector.
A Departure from the Past
This marks a departure from the SEC’s previous stance, where Chairman Gary Gensler consistently linked cryptocurrency to negative activities, including terrorism funding and criminal behavior, whenever an opportunity arose.
Factors at Play
Deaton speculates that the SEC’s change in behavior may be influenced by the agency’s recent legal setbacks and the impact of major institutional opinions.
The “Larry Fink Effect”
He suggests that Gensler may prioritize the views of major incumbent donors and institutions over his previous approach.
A Shared Perspective
This observation aligns with the viewpoint of Scott Melker, also known as “The Wolf of All Streets,” who recently stated in a Twitter post that the approval of a spot Bitcoin ETF appears imminent, citing a shift in language and tone.
Recalling Recent Events
On October 16, reports emerged that the US securities regulator had granted approval for BlackRock’s application to launch a spot BTC ETF in the United States. This news generated enthusiasm in the crypto community, resulting in a swift market surge, with Bitcoin’s price jumping by over 10% in a matter of minutes to reach approximately $29,500 (according to CoinGecko).
A Short-Lived Celebration
However, the excitement was short-lived, as it became clear that no official approval had been granted. The SEC also chimed in, urging people not to rely on unverified internet information and to verify details with original sources.
Differing Trust Levels
Deaton disagreed with the SEC’s caution, asserting that he places more trust in independent judges who oversee the agency rather than the agency itself. He pointed out that an Appellate Court had previously labeled the SEC as “arbitrary and capricious.”
Listening to the Judges
In Deaton’s view, the federal judges’ perspectives on the SEC carry more weight. He cited a federal judge in the Southern District of New York who called the SEC lawyers hypocrites and accused them of lacking faithful allegiance to the law. Deaton concludes that when it comes to the SEC, he chooses to listen to the judges, who are making their voices heard.