XRP advocate and lawyer John Deaton has voiced strong criticism against the U.S. Securities and Exchange Commission (SEC) for its reliance on regulations from 1933 to oversee modern technologies such as blockchain and artificial intelligence. He argues that these outdated laws do not align with the rapid advancements in technology and the need for real-time information access that today’s internet provides.
Are 1933 Regulations Still Relevant Today?
According to Deaton, the current disclosure laws were crafted to counteract information disparities in a time devoid of contemporary technology, rendering them ineffective against the swift pace of current innovations.
Is the SEC Prepared for Technological Advances?
Deaton asserts that blockchain companies are hindered by these antiquated regulations. He advocates for the SEC to establish straightforward guiding principles for the industry, echoing comments made by Michael Saylor about integrity in business practices.
Key takeaways from Deaton’s critique include:
- The SEC’s reliance on century-old regulations is detrimental to the blockchain sector.
- Modern investors can access real-time information, making traditional disclosure rules obsolete.
- Leadership reform within the SEC is essential to modernize its approach to technology.
Deaton emphasizes that the new leadership at the SEC should adopt a forward-thinking, technology-centric strategy. Ripple CEO Brad Garlinghouse has also expressed concerns regarding the implications of appointing Bob Stebbins, pointing out potential continuities in enforcement-driven policies. Together, Deaton and Garlinghouse urge the SEC to create a transparent regulatory landscape that supports the growth of the blockchain industry.