Ripple v. SEC Lawsuit: Lawyer Questions SEC’s Ethics
The post Ripple v. SEC Lawsuit: Lawyer Questions SEC’s Ethics appeared on BitcoinEthereumNews.com.
The Securities and Exchange Commission has held increasing sway over cryptocurrency markets. Its influence has grown along with a series of lawsuits against crypto firms beginning in 2020. However, a number of court decisions favorable to the defendants in the Ripple lawsuit have tested the limits of the commission’s power. Now, John Deaton is calling the powerful government regulator’s ethics into question as well. The Rhode Island lawyer recently highlighted a revolving door at the SEC. Conflict of Interests in Ripple Lawsuit? According to Investopedia, “The term ‘revolving door’ refers to the movement of high-level employees from public-sector jobs to private-sector jobs and vice versa.” In the revolving door thread from this week, John Deaton pointed out that former SEC Chair Jay Clayton was once a partner at Sullivan & Cromwell. That’s the law firm that blockchain company ConsenSys hired when it bought J.P. Morgan’s blockchain platform Quorum in 2020. Drawing parallels to the Hinman case, Deaton argued that Ethereum and ConsenSys have received special treatment from the SEC, while the commission has unfairly targeted Ripple Labs. Ethereum cofounder Joseph Lubin founded ConsenSys in 2014. Deaton said that if Ripple Labs had hired the legal firm where former SEC Chair Jay Clayton had worked, the Ripple lawsuit would not have happened on Clayton’s watch: “Here’s a fact: if [Ripple’s CEO and chief legal officer] would’ve rushed to hire Sullivan & Cromwell to represent Ripple once they learned Clayton was appointed as [Chairman], Ripple would not have been sued on Clayton’s watch.” As a result, Deaton argues the SEC is unfairly picking winners and losers in the cryptocurrency industry. Furthermore, Deaton bemoaned journalists who are meanwhile complacent about regulatory ethics. He called it “truly sad” that “respectable journalists” don’t view conflicts of interest at the SEC as worthy of reporting. What’s…
Filed under: News - @ December 3, 2023 9:00 am