• Coinbase’s Chief Legal Officer, Paul Grewal, has voiced concerns over the US SEC’s refusal to guide crypto companies.
• XRP advocate and lawyer John Deaton agrees with Grewal’s viewpoint that this stance discourages ethical behavior.
• Both criticize the SEC for using voluntary disclosures by crypto enterprises to fuel enforcement actions against them.
Coinbase’s Legal Chief Raises Concerns Over SEC’s Stance
Coinbase’s Chief Legal Officer, Paul Grewal, has raised concerns over the US Securities and Exchange Commission’s (SEC) refusal to provide guidance on regulatory requirements for cryptocurrency companies. He believes this stance is discouraging ethical behavior and exploiting voluntary disclosures by crypto enterprises to fuel enforcement actions against them.
XRP Advocate Agrees With Grewal’s Viewpoint
XRP advocate and lawyer John Deaton has agreed with Grewal’s viewpoint on the matter, indicating that the current approach taken by the SEC deters good conduct. He noted how transparent disclosure of partnerships and token sales have been used against companies by the SEC in order to insinuate a shared interest among token holders.
SEC Interpretation of Lawful Token Sales Controversial
The SEC’s interpretation of seeking advice on lawful token sales has been controversial as it interprets this action as a potential violation of Section 5 of the Securities Act. This is because they believe such consultations imply an intention to infringe upon the law when in fact they often serve as a preventive measure instead.
SEC Accused Of Playing Favorites In Crypto Sector
Deaton also accused the SEC, led by Gary Gensler, of playing favorites within the crypto sector, leading many firms to struggle for access due to its unfavorable bias towards cryptocurrencies. As such, these debates have arisen among members of DailyCoin Community in light of these events.
Conclusion
In conclusion, Paul Grewal and John Deaton have both voiced their concerns over what they perceive as a lack of guidance from the US SEC regarding regulatory requirements for cryptocurrency companies seeking compliance within this industry. They argue that this stance is not only discouraging ethical behavior but also exploits voluntary disclosures from enterprises in order to enforce actions against them unfairly.