Crypto exchange giant Binance is facing several major issues including legal problems, high-profile resignations, and an investigation opened by the US Department of Justice (DoJ). Crypto lawyer and activist John Deaton, known for his support of XRP, stated that he expects the DoJ to submit a sealed indictment against Binance.
Regulators Will Crush Crypto Instead of Killing It, Says Famous Crypto Lawyer
Speaking in a Space live stream on September 13, crypto lawyer and activist John Deaton, known for his support of XRP, made a striking prediction about the lawsuit filed by the US Securities and Exchange Commission (SEC) against Binance.
Deaton said that the Department of Justice (DoJ) could initiate legal action against the largest crypto exchange, Binance. He expressed concerns about this possibility, pointing to a series of unusual events in the crypto market as the reason for his concerns. The lawyer stated that it would not be surprising for the DoJ to submit a sealed indictment against Binance.
Deaton also highlighted a noticeable change in the approach of regulators and lawmakers towards the crypto industry, suggesting that market participants should prepare for a lengthy legal battle. He said:
Unfortunately, I believe that we need to be prepared for a fight that will last for quite a long time. We are witnessing regulators transitioning from ‘We will kill crypto’ to ‘No, we can’t kill it, so we will crush it and allow traditional players to take over.’
Previously, Deaton expressed the view that crypto should continue to be debated in US courts until 2025 as a policy matter. The lawyer expects a political consensus to be reached in the US after that point. Therefore, it may not be as easy as expected for Binance to reach a settlement or surrender without a fight.
SEC’s Stance on XRP
Lawyer Jeremy Hogan, who also participated in the live stream, mentioned that the SEC will not appeal the decision given by a court regarding XRP. The SEC’s statement indicates that the question of whether XRP is a security in and of itself is no longer being evaluated. Hogan added that the increase in the number of crypto companies leaving the US is not a positive sign, emphasizing the need for innovation.
In the current period when the US is trying to regulate the crypto market in a disruptive manner, the market is looking for an environment where individuals can develop their ideas and innovations with minimal legal restrictions.
