According to XRP lawyer John Deaton, the crypto market is facing a political and economic war as SEC plans to take up to 200 crypto enforcement actions. Deaton predicts that the United States may not see legislation for crypto until late 2025. Deaton referred to former Congressman Barney Frank’s comments that Signature Bank was targeted due to its links with crypto companies. Deaton believes that more clarity will come from fighting in the courts. He also referred to recent court arguments in the Grayscale Vs SEC case, in which the judge questioned the regulator’s intent behind disapproving the company’s spot Bitcoin ETF application.
Political and Economic War on Crypto
Deaton’s concerns about the political and economic war on crypto are not unfounded. Recent reports suggest that the SEC may take up to 200 enforcement actions on the crypto market in the next two years. These enforcement actions follow recent actions on stablecoin operations and crypto staking services in the US. Deaton believes that the SEC’s agenda is to crush crypto and allow incumbents to come in and get a bigger slice of the infrastructure and retail.
The Ripple Vs SEC Case
One case that has captured the attention of the crypto market is the Ripple Vs SEC case. Recent reports suggest that the much-anticipated summary judgment, in this case, could be out in the next few weeks. The judgment could have a long-term impact on the future of the crypto market.
The stakes are high in this case, as it could have a significant impact on the legal status of cryptocurrencies in the US. The SEC has alleged that Ripple’s XRP token is a security and that Ripple has been selling it without registering it as such. Ripple, on the other hand, argues that XRP is not a security and that the SEC has no jurisdiction over it.
If the court rules in favor of the SEC, it could set a precedent for other cryptocurrencies to be classified as securities. This could have a significant impact on the crypto market, as it could subject cryptocurrencies to the same regulations as traditional securities. On the other hand, if the court rules in favor of Ripple, it could provide clarity on the legal status of cryptocurrencies and provide a framework for other cryptocurrencies to follow.
The Role of Amicus Briefs
Professor J.W. Verret of the Scalia School of Law at George Mason University believes that the amicus briefs in the Ripple case will be highly essential if the case heads to the Supreme Court. An amicus brief is considered a legal document filed in a court case by someone who is not a party to the case but has a strong interest in the outcome.
Verret believes that amicus briefs from industry participants could provide valuable insights into the workings of the crypto market and its legal status. These briefs could help the court understand the nuances of the crypto market and make an informed decision. Verret also believes that the Ripple case could provide an opportunity for the Supreme Court to provide clarity on the legal status of cryptocurrencies.
Conclusion
The crypto market is facing a political and economic war, and the outcome of the Ripple Vs SEC case could have a significant impact on the legal status of cryptocurrencies in the US. While John Deaton predicts that there may not be legislation for crypto in the US until late 2025, the outcome of the Ripple case could provide much-needed clarity on the legal status of cryptocurrencies. The role of amicus briefs in the Ripple case could also provide valuable insights into the workings of the crypto market and its legal status.
