Pro-XRP lawyer John Deaton says that the big banks will attempt to swoop in and acquire vast pieces of the crypto market after the U.S. Securities and Exchange Commission (SEC) hammers it down.
Deaton, who represented XRP holders in Ripple’s lawsuit with the SEC, says that once banking giants like JPMorgan and Goldman Sachs get their piece of the crypto pie, US officials will conveniently draw up a regulatory framework for the industry.
“Crypto isn’t dead. I will say this again: this is all about crushing the market and then, watch, JPMorgan and Goldman Sachs, etc. will get a bigger slice and then give Gensler a call, and then there will be some ‘framework’ worked out.”
Last week, the SEC brought charges against both Coinbase and Binance, the two largest crypto exchanges in the world.
Deaton says the charges are part and parcel of an ongoing anti-crypto agenda, which will ultimately end with large institutions buying up much of the industry.
“I’ve heard 50% of investing capital in the world is in the US. That’s a lot of influence. This war was always going to get worse before it got better. When the SEC sought a TRO (temporary restraining order) related to Binance’s assets, it signaled a DOJ (Department of Justice) case may be next. It’s part of the anti-crypto agenda.”
Months before Coinbase was sued, Deaton said he was expecting Chair Gary Gensler and the SEC to launch an offensive on the exchange.
“I’ve been saying for a year that this was the plan. Once the market is at the bottom and the incumbents get a bigger piece, Gary and the SEC will come to the table and work out some form of guidelines or clarity…
Even if [Ripple CEO] Brad Garlinghouse is correct and 99% of crypto goes to zero, it would still leave 100-200 projects – so you get the picture. 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 under $9 billion with $5 billion in cash. I wouldn’t be surprised to see a takeover attempt if [Coinbase CEO] Brian Armstrong doesn’t accept an incumbent partner. I wouldn’t be surprised if Gary sues Coinbase attempting to serve as the proverbial straw, while investors get screwed.”
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