SEC Claimed To Have Gaslighted During Rulemaking Dispute Over Coinbase

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US SEC

The United States Securities and Exchange Commission (SEC) and Coinbase are involved in a continuing legal dispute. John Deaton, a lawyer supporting XRP, has claimed that Gary Gensler, the Chair of the SEC, has gaslit the public. Deaton has explained that Gensler disagreed with his earlier stance regarding cryptocurrencies. The accusation surfaced as the SEC rejected Coinbase’s petition regarding rulemaking for cryptos.

The Commission had provided three reasons for the rejection. Firstly, it claimed that current laws regarding securities are applicable to cryptocurrencies. Secondly, the questions over the nature of the SEC’s engagement with the markets of crypto securities when it comes to rulemaking. Finally, it was important that the discretion of the commission is preserved when it comes to setting the priorities regarding rulemaking.

Deaton Criticizes The SEC

Deaton took to X (previously called Twitter) to emphasize the statement put out by Gensler that talked about the decision made by the SEC and the reasons behind it. There, the Chair had said that there was nothing new or unique regarding cryptocurrencies. Gensler further clarified that the rulemaking request by Coinbase was based on their belief about the crypto ecosystem’s distinctiveness regarding asset volatility and how all assets are categorized as securities under present laws.

Deaton, however, points out that the recent stance is a direct opposition to what Gensler had said earlier during his testimony to Congress in 2023. According to Deaton, Gensler had asserted cryptocurrencies situated in an area that is not under the scope of the commission because of the item’s unique nature. As such, Gensler had talked about cryptos constituting a gap in regulations. As such, according to Deaton, the request from Coinbase was based on the perspective of the SEC, and not their own beliefs.