XRP Holders' Attorney Supports Chamber's Allegations of SEC's Overreach in Digital Asset Industry

On May 11, John Deaton, the attorney and legal representative of XRP holders in the collective lawsuit against the U.S. Securities and Exchange Commission (SEC), supported the report presented by the U.S. Chamber of Commerce, a major business interest group, opposing the country’s current regulatory environment driven by the SEC.

According to the Chamber of Commerce, the SEC is misusing its powers, destabilizing the regulatory environment of cryptocurrencies and causing significant economic harm to Coinbase and the broader business community.

XRP holders’ attorney endorses Chamber’s report, denouncing SEC’s overreach

XRP holders’ attorney, Deaton, stated that the Chamber of Commerce was not the first to denounce the SEC’s overreach in the uncertain regulatory environment. For over two years, XRP holders have pointed out that the SEC won’t stop after its attack on Ripple.

“XRP holders were the first to call out the SEC’s gross overreach, but clearly, we aren’t the last. Over two years ago, we warned that this wouldn’t end with XRP. Even when the government’s overreach targets a project you dislike, you must stand against it.”

Stuart Alderoty, Ripple’s Chief Legal Officer with over 35 years of legal experience in regulatory affairs and complex litigation, noted that the current uncertain regulatory environment is not just a crypto problem but a “We The People” problem. The regulations affect not only the crypto ecosystem but all individuals and businesses involved.

Chamber’s submission could impact crypto regulation

The Chamber of Commerce made three compelling arguments against the SEC that could add more credibility to the companies and proponents fighting legal battles against the SEC.

Firstly, they indicated that regulatory uncertainty stifles innovation in the United States. Secondly, the SEC is destabilizing the regulatory environment of cryptocurrencies. And lastly, the SEC is violating due process and the right to fair notification.

The last point relates explicitly to Coinbase’s lack of response from the SEC when asked to explain which assets offered on its platform are considered securities. The SEC, so far, has been unwilling or unable to respond, even after receiving a court order from a U.S. court to address Coinbase’s legal action.

As recently reported by ZyCrypto, Coinbase is receiving support from various entities like the Chamber of Digital Commerce (CDC), the world’s largest blockchain advocacy and trade group, in its public battle against the SEC.

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