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Most people agree that the legal dispute between Ripple Labs and the U.S. Securities and Exchange Commission (SEC) sets the most significant precedent for the cryptocurrency sector. The crypto business should anticipate an even sterner crackdown from the American regulator if SEC Chairman Gary Gensler and his agency win the lawsuit. Nonetheless, the motivations can be seriously dubious.
A platform created by lawyer John E. Deaton called CryptoLaw first disclosed startling facts concerning Gary Gensler back in July of last year. In the infamous “Gensler Files,” Deaton exposed the possibility that the SEC chairman was serving outside interests.
It was discovered at the time that Gensler had more than $100 million in assets in the form of funds, primarily managed by Vanguard Group, through two significant businesses, namely Annabel Lee LLC and Marital Trust. While Gensler’s public schedule does not list any major meetings with firms involved in the cryptocurrency industry, it does list at least seven meetings with Vanguard Group.
And that conflict of interest is still obvious right now. Gensler’s preference for Wall Street titans is clearer than ever at a time when not just Ripple is in conflict with the SEC but the whole sector is dealing with “Operation Choke Point 2.0.”
According to Eleanor Terrett of Fox Business, Gary Gensler’s public schedule for September was just posted on the SEC website. Highlights include four meetings with CFTC Chairman Rostin Behnam, two with former SEC General Counsel John Coates, as well as encounters with Black Rock, Vanguard Group, and China’s envoy Nicholas Burns.
“It’s important to note that Vanguard Group manages Gensler’s personal fortune of $100M and he has given them excessive access to his office since he became SEC Chair,” Deaton commented.
Deaton recently proposed a theory as to why the SEC is taking action against Ripple and the whole cryptocurrency sector. The lawyer claims that Gensler would keep up its enforcement-based regulating strategy until Wall Street behemoths like Vanguard are pleased.
Wall Street titans are often optimistic about cryptocurrency, as Deaton highlighted. The greatest asset manager in the world, Black Rock’s Larry Fink, reportedly predicted that technology “will play a huge role in the modern world.” Also, he underlined the necessity for fair restrictions for cryptocurrency. Deaton’s conclusions were as follows:
So, Ripple might work as a model for the SEC to regulate cryptocurrencies, giving the American organization control over all tokens, preferably encompassing all secondary market transactions. Given these Deaton disclosures, it appears more crucial than ever for Ripple to defeat the SEC.
The XRP price was $0.3906 at the time of publication, down 2.6% over the previous day due to the market-wide drop.
