Attorney John Deaton: 'Securities Clarity Act Will Protect Crypto Industry from SEC'

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US lawmakers have introduced a securities clarity bill. A lawyer defending the interests of XRP holders supported this initiative.

The bill was introduced by US House of Representatives members Darren Soto and Tom Emmer. According 
project, digital assets sold ortransferred to investors as part of an initial coin offering (ICO) should not be considered securities. The bill distinguishes between an investment contract transaction that constitutes an offer of securities and the underlying asset of the investment contract, which is often not classified as a security (eg, orange groves under the Howey test).

CryptoLaw founder John Deatonsupported believes that the US Securities and Exchange Commission (SEC) will not be able to establish control over most crypto assets if the law is passed. The lawyer expressed regret that such bills have to be created because the SEC is already “out of control” by continuing to extend the Howey test to secondary markets. At the same time, the regulator cannot cite specific cases when the underlying asset of an investment contract would be considered a security.

Deaton complains that the department is now usingHowey test for almost every transaction. And at the same time, the SEC was able to distinguish between XRP purchased directly from Ripple as part of the ICO, and XRP coins purchased on secondary markets.

The lawyer is confident that Judge Analisa Torres(Analisa Torres) will take this issue into account when making a final judgment in the Ripple case. Recall that in May, Torres rejected the SEC's request to maintain the confidentiality of drafts of William Hinman's speech on the status of the airwaves, which could have a decisive role in the outcome of the proceedings.