SEC Neglects Actual Scams for Bank-Regulated Assets: Ex-Paxos Exec

Pro-XRP lawyer John Deaton recently expressed his opinion on the inevitable wounds that the U.S. Securities and Exchange Commission (SEC) will obtain from the U.S. Supreme Court. Deaton shared the views of former Paxos Executive Austin Campbell, who claimed, “If the SEC simply did not exist and had been replaced with literally nothing, far fewer consumers would have been harmed in crypto.”

Campbell pointed out the SEC’s “ongoing crusade to protect terrorist funding and large bank monopolies at the expense of the American consumer”. He mentioned the agency’s strikes against Paxos, Ripple, LBRY, Coinbase, and Stoner Cats. Moreover, he raised how the Commission failed to slam “actual scams” such as FTX, Celsius, and Terraform Labs.

PayPal became the first major fintech to introduce a stablecoin by launching PYUSD. PayPal shared that on November 1, they received a subpoena from the SEC Division of Enforcement related to PayPal USD. The American payment system stated that the subpoena requested the production of documents, and they were cooperating with the SEC’s request.

“PYUSD is transparently a stored value project,” stated Campbell. He added that the stablecoin is under the guidance of the New York State Department of Financial Services. Moreover, he said that if “PYUSD is a security, so are Starbucks gift cards, prepaid debit cards, and airline reward points.”

It’s worth noting that Coinbase was charged by the SEC in June 2023, and the former fought back in August by filing a motion to dismiss (MTD). They requested that the court drop the SEC’s complaint, which the court accepted and shared that the oral argument is set to happen on January 17, 2024. John Deaton claimed to be “envious” of Coinbase lawyers, who will confront the SEC during the MTD.