Crypto Market News: XRP Attorney John Deaton, who represents more than 70,000 XRP token holders in the US Securities and Exchange Commission (SEC) Vs Ripple lawsuit, warned of the big implications of Gary Gensler’s congressional hearing. He recalled House Financial Services Committee Chairman Patrick McHenry’s laser-sharp question to Gensler about his take on whether Ethereum is a security or a commodity. In his initial arguments, McHenry had countered Gensler’s undermining response, saying the SEC had commented on this in more than 50 enforcement actions against the crypto market.

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Attorney Deaton recalled the example of the Ripple lawsuit where the SEC referred to XRP tokens being sold as a securities offering. He also took the example of the latest crypto market lawsuit on the Bittrex exchange, in which the SEC named six cryptocurrencies as securities.

Implications for crypto market from Gary Gensler Hearing

At the hearing, Gensler indicated that cryptocurrencies that have a Twitter account on the website, software that needs updates, and have hired a team of lawyers can be called securities. On the contrary, Deaton noticed, that the SEC’s stance had always been that crypto companies should come forward and talk to the bureau for compliance with the law, as opposed to hiring lawyers to talk. Hence, these criteria for calling it a cryptocurrency could endanger the US crypto market, the lawyer warned.

Meanwhile, the XRP community is hoping for a favorable outcome in the SEC Vs Ripple lawsuit if Judge Analisa Torres is aware of developments in the final hearing.

More interestingly, Gensler also said that if crypto companies don’t follow the laws of the United States, they’re better off outside the country. This view has been widely criticized in recent times as the US market has always thrived on success from an innovation leadership position. “Gensler doesn’t seem concerned about innovation leaving the United States,” Deaton said.

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Anvesh reports major developments around crypto adoption and trading opportunities. He has been associated with the industry since 2016 and is now a strong advocate for decentralized technologies. Anvesh is currently based in India. Contact him at [email protected]

The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication is not responsible for your personal financial loss.

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