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CryptoLaw founder and lead lawyer John Deaton, who represents XRP investors in Ripple’s SEC litigation, commented on the definition of bitcoin by Securities and Exchange Commission Chairman Gary Gensler. He called it a commodity, not a security.
According to Deaton, the official called bitcoin the only cryptocurrency that he does not classify as a security. However, the lawyer considers this approach to be completely wrong. According to him, “not a professional bureaucratic hack, but a court” can decide what constitutes a security.
The expert believes that the reason why Gensler says so is that he prefers the vagueness of normative language. They give him prosecutorial opportunities through enforcement.
With clear criteria and guidelines in place, organizations and entrepreneurs will be able to act on their own without the risk of fines or subpoenas.
Deaton predicts that before the end of this year, Gensler will file a lawsuit against one or more cryptocurrency exchanges, alleging that they sell unregistered securities other than bitcoin.
Commenting on the SEC lawsuit against Ripple, the lawyer noted that recent market events have proven that the price of XRP is not affected by Ripple and its registry, but by Bitcoin.
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