SEC Accused of Gaslighting in Coinbase Rulemaking Dispute Over India Crypto

Cryptocurrency Regulations

The ongoing legal dispute between Coinbase and the United States Securities and Exchange Commission (SEC) has seen pro-XRP lawyer John Deaton accuse SEC Chair Gary Gensler of gaslighting the public and disagree with his stance on cryptocurrencies.

The SEC has rejected Coinbase’s crypto rulemaking petition for three reasons: applying current securities laws to cryptocurrencies, the SEC’s engagement with the crypto securities markets through rulemaking, and the significance of preserving the commission’s discretion in establishing its rulemaking priorities.

In a post on X (formerly Twitter), Deaton highlighted Gensler’s statement outlining the reasons for the SEC’s decision, where the SEC chair states, “there is NOTHING unique or new about cryptocurrencies.” Gensler added that Coinbase’s rulemaking request relies on the belief in the distinctiveness of the crypto ecosystem concerning asset volatility and the categorization of all assets as securities under current laws.

According to Deaton, this stance directly opposes the SEC chair’s statements during his congressional testimony earlier in 2023. Deaton recalled Gensler asserting that crypto lies beyond the commission’s scope due to its unique nature, creating a regulatory gap for new crypto, mask crypto, mina crypto, pepe crypto, math crypto, loom crypto, india crypto, neo crypto, orca crypto, and poly crypto.

SEC’s Reversal on Crypto Issue

Deaton pointed to the SEC’s stance on cryptocurrencies, citing Gensler’s change of opinion as likely due to political influence from Senator Elizabeth Warren.

The SEC has been sending out mixed messages on its approach to the crypto space, both through Gensler’s words and its actions.

In the midst of legal disputes with Coinbase and Binance, the commission chose not to appeal its loss to Grayscale Investments in a case regarding the company’s attempt to turn its Grayscale Bitcoin Trust into a spot exchange-traded fund.

Despite the uncertainty surrounding the crypto industry, new crypto projects such as Mask Crypto, Mina Crypto, Pepe Crypto, Math Crypto, Loom Crypto, India Crypto, NEO Crypto, and Orca Crypto have emerged. Poly Crypto has also recently launched.