SEC faces conflict of interest lawsuit in Coinbase rulemaking litigation.

By Coinbase Global Inc. And in the ongoing legal dispute between the US Securities and Exchange Commission (SEC), XRP owner attorney John Deaton has accused the SEC's top official, Gary Gensler, of ‘gassing' the public and disagreeing with his position. On cryptocurrencies.

The development in Coinbase's rulemaking inquiry comes as the SEC denies the trading platform's petition for three reasons.

These factors include the application of current securities laws to cryptocurrencies, the SEC's role in regulating crypto securities markets, and the need to preserve the Commission's discretion in establishing its priorities.

Although these things are clear, John Deaton, responding to the SEC Chairman's letter, emphasized that “there is nothing unique or new about cryptocurrencies” and that the request for Coinbase rulemaking is based on his belief in the diversity of the crypto ecosystem in terms of asset volatility and allocation. As securities of all assets under existing laws.

According to Deaton, this position directly contradicts the statements of the SEC chairman during his congressional testimony earlier this year. Dayton recalled that during the hearing, Gary Gensler created a regulatory loophole by arguing that crypto, by its unique nature, was beyond the commission's purview.

Deaton explained that Coinbase's request is based on the SEC's view, as shown in previous communications. The lawyer of the owners of XRP said that the SEC chairman's complete reversal on the crypto issue was due to political motives and the support of Senator Elizabeth Warren.

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The US SEC is sending various signals about its place in the cryptocurrency ecosystem, whether it is the words of the SEC chairman or the actions of the commission in general.

Amid ongoing legal disputes with Coinbase and Binance over crypto securities, the regulator declined to appeal its defeat against Greyscale Investments. The case involves the company's attempt to convert Bitcoin Trust into a functional exchange-traded fund (ETF).

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