John Deaton, a lawyer we know soon in the cryptocurrency market, criticized the US SEC for delaying BlackRock’s Bitcoin ETF. According to Deaton, regulatory bias favors institutions rather than individual access.
John Deaton: This is why the SEC is delaying its Bitcoin ETF decision!
Pro-Ripple attorney John E Deaton has made it clear to the US Securities and Exchange Commission (SEC)’s decision to delay the approval of the global asset manager BlackRock’s Bitcoin exchange-traded fund (ETF). Deaton cited recent statements by former SEC Chairman Jay Clayton. In this context, he highlighted concerns that regulators prioritize corporate interests over individual access. The pro-XRP lawyer expressed his views on the matter as follows:
Note that Clayton says we will not allow individual access until large institutions (eg BlackRock) offer it. He literally admits that this is how things work in the US. Of course, he does all this for the protection of the investor. I see this as nonsense. We are witnessing exactly what I said on Making Money. Regulators are friends of the residents, and they all eventually agreed that they can’t kill the crypto, but crush its price so the same established dudes can get a bigger slice.
Notice that Clayton says until the large institutions (eg BlackRock) offer it, we won’t allow retail access. He literally admits that’s how it works in the United States. Now, of course, he couches it all in the name of investor protection, which I reject as bullshit. We are… https://t.co/Eb04fLuHhG
— John E Deaton (@JohnEDeaton1) September 1, 2023
History of the US SEC regarding crypto ETF approvals
As you follow on Kriptokoin.com, the SEC’s hesitations are not new when it comes to the world of cryptocurrencies. However, former SEC Chairman Jay Clayton acknowledged the apparent demand for access to Bitcoin (BTC) from individual and institutional investors in a squawk box interview. Clayton admits that Bitcoin is not classified as a security. The debate centers on whether the cash trading market can be manipulated so easily that it hinders individual access.
However, the balance may be shifting as large financial institutions put in place oversight mechanisms. These institutions vouch for the legitimacy of the cash market. It also suggests that this is now a viable product.
Deaton’s stance on regulatory bias
Citing Jay Clayton’s words, Deaton hints that US regulators may be biased in favor of major financial institutions like BlackRock under the guise of “investor protection”. That’s why he’s expressing his disappointment at the SEC’s delay of Bitcoin ETF decisions. He claims that by delaying such decisions, regulators could try to manipulate crypto prices in a way that benefits these “resident friends.”
Meanwhile, in his interview, Clayton highlights the difference between a Bitcoin futures product and a cash product. It implies that it will not be possible to maintain this distinction in the long run. Despite the SEC’s delay, Clayton remains optimistic about the future. It also points out that the 45-day reconsideration period is not a significant delay in the broader context. The tension between the need for regulatory vigilance and market demand for Bitcoin ETFs continues to shape the landscape. Some see the SEC’s postponement decision as a precautionary move. However, it is also true that voices like Deaton’s are necessary to ensure that the interests of all market participants, especially individual investors, remain on the agenda.
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