Pro-XRP lawyer John Deaton says the big banks will try to penetrate and acquire large chunks of the crypto market after the US Securities and Exchange Commission (SEC) cracked it down.
Deaton, who represented XRP holders in Ripple’s lawsuit with the SEC, say that once banking giants such as JPMorgan and Goldman Sachs get their slice of the crypto pie, US officials will readily create a regulatory framework for the industry.
Crypto is not dead. I’ll say this again: this is all about crushing the market and then, mind you, JPMorgan and Goldman Sachs, etc. will get a bigger share and then call Gensler, and then a “framework” will be worked out.
Last week, the SEC filed charges against both Coinbase and Binance, the two largest crypto exchanges in the world.
the barrel say the charges are part of an ongoing anti-crypto agenda, which will eventually end with major institutions buying up much of the industry.
“I have heard that 50% of the world’s investment capital is in the US. That’s a lot of influence. This war would always get worse before it got better. When the SEC sought a TRO (temporary restraining order) regarding Binance’s assets, it indicated that a DOJ (Department of Justice) case could be next. It is part of the anti-crypto agenda.”
Months before Coinbase was indicted, Deaton said he expected Chairman Gary Gensler and the SEC to launch an offensive on the exchange.
“I have been saying for a year that this was the plan. Once the market is at the bottom and the incumbents get a bigger slice, Gary and the SEC will come around the table and work out some form of guidance or clarity…
Even if [Ripple CEO] Brad Garlinghouse is right and 99% of crypto goes to zero, there would still be 100-200 projects left – so you get the idea. Utility will win the day. I have no idea where the bottom is, but what is clear to me is the agenda being pursued by regulators like Goldman Gary.
Coinbase has a market cap of less than $9 billion with $5 billion in cash. I wouldn’t be surprised if there was a takeover attempt [Coinbase CEO] Brian Armstrong will not accept an incumbent partner. I wouldn’t be surprised if Gary sues Coinbase to serve as the proverbial last straw while investors get screwed.
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