John Deaton tweeted that the regulator may classify the meme cryptocurrency as an unregistered security. Yes, the lawyer noted, his assumption may seem ridiculous, but with today's leadership of the SEC, this may well become a reality.
Deaton's comments come after media reports that Elon Musk plans to boost Twitter revenue with crypto payments.. The company has already begun to develop software and apply to regulators for licenses. These publications have led to speculation that the DOGE meme coin, which Musk backs, will be integrated into the payment system.. Against the backdrop of rumors, the DOGE rate rose to $0.098.
With his tweet, Deaton wanted to emphasize that the agency is taking enforcement action against cryptocurrency companies by filing lawsuits against them.. SEC Chairman Gary Gensler is confident that there is no need to create new rules for the emerging digital asset market, which, in his opinion, should be regulated like traditional finance (except for Bitcoin).
In his claims to the SEC, John Deaton often mentions the proceedings with Ripple, in which he previously acted as an independent expert.. According to Deaton, the SEC can call anything an investment contract. Following the logic of the department, the lawyer argues, it considers even orange trees to be securities in a court case from 1946, which laid the foundation for the Howey test.. Now this test is used to determine whether an asset is a security.
This month, the SEC filed a lawsuit against the Gemini marketplace and Genesis loan service, accusing them of offering unregistered securities through the Gemini Earn program.. This caused surprise in the crypto community, as the program was regulated by the state of New York, and the SEC knew about the product for over a year and did nothing.;