John E. Deaton – a US attorney who represents thousands of XRP investors in the lawsuit between Ripple and the SEC – criticized the agency for one of its latest moves.
Specifically, the regulator opposed a reorganization plan presented by Coinbase, according to which customers of the now-bankrupt crypto lender Celsius Network could be reimbursed for their losses.
The SEC has Turned Into a ‘Threat to Retail Investors’
The leading cryptocurrency exchange Coinbase recently displayed intentions to engage with the former crypto giant Celsius Network, aiming to distribute digital assets back to the latter’s users. However, the SEC raised concerns about a restructuring plan that will see the marketplace providing brokerage services.
Recall that the watchdog filed a lawsuit against Coinbase in June, accusing it of violating several laws and offering trading services with alleged unregistered securities, such as SOL, MATIC, ADA, and others.
John Deaton was among the people left baffled by the SEC’s decision to halt the collaboration between Coinbase and Celsius Network. He went further, maintaining that the regulator has become the “single greatest consistent threat to retail investors.”
My God, every time I start thinking the @SECGov can’t possibly do more to fail as an institution, it proves me naive. The SEC has become the single greatest consistent threat to retail investors. https://t.co/H8dg2Bq6Sn
— John E Deaton (@JohnEDeaton1) September 25, 2023
The SEC has Harmed Crypto Multiple Times
This is not the first time Deaton has lambasted the Commission for its hostile stance on the cryptocurrency sector. In August, he claimed that the lawsuit that the SEC filed against Ripple had caused damage to the blockchain enterprise and negatively affected XRP adoption.
As CryptoPotato reported in July, the legal battle between the two entities reached its peak when Ripple won a partial court victory. It resulted in a massive price increase of XRP and overall enthusiasm across the crypto space.
However, the war is not over, with the SEC formally appealing the ruling. We are yet to see whether that request will get approved by the relevant authorities and how it could impact the outcome of the case.