XRP supporter Lawyer John Deaton criticized the US Securities and Exchange Commission (SEC) for relying on laws created in 1933 to regulate emerging technologies such as blockchain, artificial intelligence and robotics. Deaton emphasized that the current legal framework does not take into account the real-time availability of information brought about by the internet and technological advances.
SEC and 100 Years of Laws
Deaton noted that current disclosure laws have been in place for nearly a century and are designed to address investment information asymmetries. He stated that these laws, which were created in a time when technologies such as the Internet did not exist, could not adapt to today’s rapid technological changes.
Deaton argued that blockchain companies are experiencing significant difficulties due to these outdated crypto regulations. He stated that the US SEC should focus on clear and simple principles to guide the industry. Reiterating Michael Saylor’s views, Deaton said;
“It’s simple, just don’t lie, cheat or steal.” –John Deaton
According to John Deaton, modern investors already have access to real-time information, including from individual participants, reducing the need for onerous disclosure rules put in place in 1933.
Expressed Opinion for the New SEC Chairman
Deaton said reformists like Brian Brooks should take the lead in modernizing the regulatory framework. He criticized current and former officials for opting for vague regulations that allow for selective enforcement.
“People like Gary Gensler, Jay Clayton, and Bob Stebbins prefer to keep laws and regulations vague as the rules of the road. Reformers like Brian Brooks and Brad Bondi are needed.” –John Deaton
Deaton argued that the new SEC chairman should adopt a technology-focused approach. Ripple 
$1 CEO Brad Garlinghouse also expressed concerns about Bob Stebbins’ nomination, stating that Stebbins was a non-compliance due to his past regulatory actions.
Garlinghouse warned that Stebbins’ appointment could lead to a continuation of enforcement-focused policies. Deaton and Garlinghouse called for the SEC to adopt a more transparent and clear regulatory approach that will support the blockchain industry.
For the sustainable growth of crypto assets, the regulatory framework needs to be updated to keep up with the pace of technology. Deaton and his supporters emphasized that the SEC should develop policies suitable for innovative technologies.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
