The blockchain lawyer and founder of Crypto-Law.us, John E. Deaton, has criticized the action by the Department of Justice (DoJ) in seeking to prosecute Ripple for following an order from a judge. Deaton compares this development to the government’s attempt at creating a Central Bank Digital Currency (CBDC) that can lock users out of the financial system at will.
In his criticism, Deaton cited a tweet by David Schwartz, Ripple’s CTO, who stated that the DoJ is insisting on criminally prosecuting people for carrying out substantive orders from an alternative judge. Schwartz, in turn, cited a tweet by James K. Filan, a former federal prosecutor who shared a Letter of Notice of Supplemental Authority filed by Ripple’s Defendants.
The letter referenced the decision of Judge Michael Wiles in the Voyager bankruptcy case where he rejected the SEC’s objections and approved the bankruptcy plan. Hence, Ripple faulted the decision by the DoJ to continue pursuing the company over its case with the Securities and Exchange Commission (SEC).
Deaton considered the situation a reckless behavior from the regulatory agency, noting that we have “out of control” agencies. Deaton extended his opinion of the government’s effort towards creating a CBDC, noting that it could lead to an abuse of power by the responsible agencies.
The possibility of abusing the CBDC is an opinion shared by Schwartz who believes that despite the good sides of innovation, users must be vigilant to avoid a similar scenario like what the internet has become. The Ripple CTO noted that having liberated the public from traditional information brokers, the internet is now delivering people to a new set of brokers.
Furthermore, according to Schwartz, CBDCs could make cryptocurrencies more useful for applications which the CBDCs are not good for. However, it must compete on a level playing field, and people must not use cryptocurrencies for applications where they are not suitable.
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Source: Cryptocurrency - investing.com
