The SEC “is breaking the law” ! Pro-crypto lawyers strike back

For the time being, Gary Gensler is untouchable. He will continue to reign supreme in the offices of 100 F Street, NE Washington D.C. Especially in the absence of solid arguments against his policies. Yet the crypto community has never stopped finding a breach in the SEC’s fortified line. Perhaps this latest initiative by pro-crypto lawyers will eventually succeed?

Paul Grewal isn’t holding back

The SEC’s attacks on crypto exchanges Binance and Coinbase have awakened the sleeping geniuses among pro-crypto lawyers. Since the beginning of the accusation story for violating securities laws against the second largest cryptocurrency exchange, Paul Grewal, Coinbase’s General Counsel, has been relentless in his attacks on the financial watchdog.

Previously, he has argued that the SEC has “misread the law” amid a regulatory blur for cryptocurrencies.

While researching, Mr. Grewal tweeted new messages slamming the U.S. Securities and Exchange Commission.

I’ve read, re-reread, and re-re-read the Major Questions Doctrine holding in Nebraska at p. 19-26. Swap out “Secretary” for “Chair,” “digital asset” for “student loans,” and there is no conclusion but one: the SEC’s interpretation of “investment contract” violates the law. 1/3

— paulgrewal.eth (@iampaulgrewal) July 4, 2023

Furthermore, he believes that the US regulator’s relentless pursuit of other digital assets besides bitcoin stems from its misunderstanding of the meaning of “economic and political significance”.

Deaton goes all out

John E. Deaton, the pro-crypto lawyer who often came to Ripple’s rescue in its case against the SEC, has also been busy in recent days. Scrutinizing his tweets on a daily basis, the man who proposed a timetable for the publication of Judge Torres’ verdict, never missed an opportunity to thwart the SEC’s attempts.

His recent Twitter intervention captured the attention of the crypto community and The Crypto Basic.

Is @iampaulgrewal engaging in hyperbole by claiming the SEC is violating the law?

LET’S REVIEW A FEW FACTS:

1) up until 2018, the SEC had no policy whatsoever regarding SEC staff owning Crypto because these digital assets were a new asset class and the SEC was unsure about it; https://t.co/9UU4jzuoZl

— John E Deaton (@JohnEDeaton1) July 4, 2023

As you can see, this is just the top part of a long Twitter thread posted by the pro-crypto lawyer. Skimming through his arguments, we noted that the founder of Crypo-Law.us rattled off a few historical facts.

He reiterated that the Senate and House of Representatives have already proposed a crypto bill. And that Congress has never been against the idea of regulating them. These same institutions also want to reduce the power in the hands of President Gary Gensler.

“Even the executive order signed by the POTUS seems to favor the CFTC and NOT the SEC,” he points out. In conclusion, he simply said that Paul Grewal is telling the truth when he speaks of a violation of the law by this institution.