Attorney Deaton reacts to the labeling of multiple crypto assets as securities by the US SEC.
CryptoLaw founder John Deaton has stated in response to the SEC labeling multiple crypto assets as securities. According to the prominent crypto advocate, an asset does not become a security simply because the United States Securities and Exchange Commission says so.
“Everyone needs to remember the SEC calling an asset a security does NOT mean it is a security,” said Deaton.
Everyone needs to remember the SEC calling an asset a security does NOT mean it is a security. Here is the SEC admitting that the Court decides if the SEC’s claim or theory is even valid.
(This was the SEC’s response to my Writ of Mandamus). pic.twitter.com/NbncmC8LaN
— John E Deaton (@JohnEDeaton1) June 11, 2023
According to Deaton, the SEC previously admitted that only the court could decide whether its theory is valid. He attached a document of SEC’s response to his Writ of Mandamus in the Ripple case, where the commission affirmed that the court would determine the validity of its theory.
Deaton highlighted a portion of the document, which read:
“Thus, the commission’s enforcement proceeding in the Southern District of New York, brought under the Securities Act, supplies the exclusive method for testing the Commission’s complaint against Ripple.”
SEC Labels Over 60 Crypto Assets as Securities
The United States Securities and Exchange Commission (SEC) has continued to lay claim as the appropriate regulator for the cryptocurrency industry. Consequently, the SEC has labeled multiple crypto assets security as part of its efforts to expand its control over the emerging market.
Following its lawsuit against Binance and Coinbase, the Securities and Exchange Commission has labeled at least 60 crypto assets as securities. Some of them include XRP, ADA, SOL, MATIC, MANA, ATOM, FLOW, CHZ, ICP, NEXO, VGX, COTI, AXS, ALGO, LBC, LUNC, USTC, MIR, among others.
It is worth noting that the regulator has given the “securities” tag to various cryptocurrencies based on years of lawsuits the commission has slammed against crypto businesses.
For instance, in its lawsuit against Coinbase, the SEC introduced 13 crypto assets as securities. Similarly, the SEC introduced 16 cryptos as securities in its case against TerraForm Labs.
SEC’s classification of different cryptocurrencies as securities has continued to cause panic within the crypto community. This practice has triggered angst among investors, as they do not know which cryptocurrency will soon be labeled a security by the SEC.