John E. Deaton criticizes Bitcoin maximalists for siding with SEC Chair Gary Gensler, who has been cracking down on the crypto industry.
Deaton, a lawyer and founder of Crypto-Law US, a platform that defends the rights of crypto holders, has blasted Bitcoin maximalists for supporting the actions of Gary Gensler, the Chair of the Securities and Exchange Commission (SEC).
In a series of tweets, Deaton accused Bitcoin maximalists of abandoning their libertarian views on government overreach in favor of Gensler’s agenda, which he claims is aimed at funnelling more money into Bitcoin at the expense of other cryptocurrencies.
Deaton also cited an article by crypto and blockchain journalist Eleanor Terrett that explains why some Bitcoin maximalists may sympathize with Gensler.
According to Terrett, some Bitcoiners or “maxis” believe that Bitcoin is the only true cryptocurrency, while all others are either imitations or scams.
However, not all Bitcoiners share this view. Some are concerned that “weaponizing the state” against other crypto projects may harm the legitimacy and reputation of American financial markets.
Moreover, they acknowledge that Bitcoin and its operations are not above the law.
Gensler has expressed a similar opinion by stating that almost all cryptocurrencies, excluding Bitcoin, could be classified as securities. Bitcoin, due to its sufficient decentralization, is categorized as a commodity, placing it outside the SEC’s jurisdiction.
Unrest in Crypto Community with Gensler’s Actions
Deaton’s comments come amid increasing regulatory measures by Gensler, whose stringent approach towards cryptocurrencies has generated significant unrest within the crypto community.
The tension has escalated to the point where Rep. Warren Davidson, R-Ohio, has declared his intention to introduce a bill to dismiss Gensler from his post at the SEC.
The SEC’s lawsuit against Ripple Labs, the company behind XRP, is one of Gensler’s most controversial cases. The SEC alleges that Ripple sold XRP as an unregistered security and seeks to stop its distribution.
Deaton has been actively involved in this case as an amicus curiae counsel, representing the interests of XRP holders who claim that they are not investors in Ripple and that XRP is not a security.
Deaton has also filed similar motions in other cases involving cryptocurrencies, such as LBRY Credits and Kin.
Meanwhile, the heavy-handed approach of the SEC under Gensler’s leadership is causing ripple effects across the industry.
Coinbase is reportedly considering relocating its headquarters to London, a jurisdiction perceived to be more crypto-friendly than the United States.
DCG is one of the most influential and prominent players in the crypto industry. Its fate will have significant implications for the future of the sector.