John Deaton, a proponent of XRP and a legal practitioner, has rejected statements made by Michael Saylor, the co-founder of MicroStrategy, who asserted that cryptocurrencies apart from Bitcoin are securities that will ultimately be subject to regulation by the Securities and Exchange Commission (SEC).
In an interview with New York Magazine on February 23, Gary Gensler, the chairman of the SEC, stated that the agency’s regulatory authority extends to “everything other than Bitcoin” in the cryptocurrency industry. Gensler’s statement garnered a mixed response from members of the cryptocurrency community, with most proponents of Bitcoin, such as Saylor, expressing approval of the SEC chairman’s remark.
According to a tweet made by Saylor on February 26, he stated that Gensler’s comment confirms a growing consensus that everything except Bitcoin should be considered a security and regulated by the SEC. Saylor also noted that this development strengthens Bitcoin’s position as the only cryptocurrency that is suitable for use as a global currency.
Attorney Deaton Says It’s False
Attorney Deaton disagreed with Saylor’s statement and the Bitcoin maximalist viewpoint in a tweet posted today. Deaton stated that, apart from Gensler and Bitcoin maximalists, there is no agreement within the cryptocurrency industry that everything except Bitcoin should be considered a security.
Read article: The Public Needs Answers About Hinman’s Speech, Says Empower Oversight in Ripple Vs. SEC
Deaton argued that there is also no agreement among legal professionals regarding the classification of cryptocurrencies as securities. He cited the example of the Ripple v. SEC lawsuit, in which he is representing XRP community members, stating that a software code cannot be considered a security. However, Deaton added that if the software code is transformed into a cryptocurrency and sold in a particular manner, it could be classified as a security like any other asset.
According to attorney Deaton, Saylor knows his initial statement is false and is only issued to “push a narrative that drives out of altcoins and into Bitcoin.”
The founder of CryptoLaw acknowledged that, given MicroStrategy’s significant exposure to Bitcoin, he could not fault Saylor for his comments. MicroStrategy, a publicly traded company, holds a substantial amount of Bitcoin, with its Q4 2022 report revealing that it had increased its holdings to 132,500 BTC. It is worth noting that Saylor is the CEO of MicroStrategy.
Read also: Crypto Community Favors Ripple Victory Over Grayscale’s Bitcoin Spot ETF
Attorneys Oppose Gensler’s Position
It is relevant to note that other lawyers in the United States have also rejected Gensler’s comments, according to reports
Jake Chervinsky, a lawyer and Policy Lead at Blockchain Association, tweeted yesterday that Gensler’s recent statement does not reflect the law. He said that the SEC cannot regulate the entire cryptocurrency market until it has successfully demonstrated its case in court.
