Regulation
Pro-XRP lawyer John Deaton criticizes Warren and the SEC over crypto regulation
John Deaton, a prominent pro-XRP lawyer, issued a harsh criticism of the SEC and Senator Elizabeth Warren, accusing them of prioritizing political agendas over investor protection. Deaton’s criticism is particularly aimed at SEC Chairman Gary Gensler, who he says failed to protect individual investors, resulting in significant financial harm.
John Deaton criticizes Warren and the SEC over crypto regulation
John Deaton’s remarks follow recent Senate discussions in which Warren urged a vote against SAB 121. According to Deaton, despite his private efforts and legal battles, he did more than Gensler to protect investors. He cites a favorable ruling by a Democratic judge appointed by former President Obama as evidence of his commitment to consumer protection.
Deaton has long advocated for sensible crypto regulation designed to protect investors from fraudsters like Sam Bankman-Fried (SBF). He criticizes the SEC’s failure to prevent high-profile collapses such as FTX, Terra and Celsius. Deaton argues that the SEC must properly target reputable entities such as Ripple, Coinbase, Kraken, Uniswap, Dragonchain, LBRY, and MetaMask, while overlooking fraudulent actors.
Deaton alleges that Gensler met with SBF on several occasions but failed to disclose details of those meetings. He suggests that the SBF’s large donations to the current administration have facilitated its extraordinary access to Gensler and other regulators. Deaton believes this reveals a wider problem of regulatory failure and mismanagement.
He points to contradictory actions by the SEC, such as accelerating Coinbase IPO only to sue them later, which illustrates a regulatory inconsistency. Deaton claims that under Warren’s influence, the SEC is being weaponized to support her political agenda, leaving investors financially devastated.
Deaton criticizes Warren’s crypto policy agenda
Previous reports indicated that Deaton criticized Warren’s letter to the Treasury secretary. Janet Yellen, which highlighted concerns about stablecoins and their potential exploitation by terrorist organizations and rogue countries. Deaton sees this as a misplaced priority on Warren’s part. He claims that while Massachusetts faces several crises, such as illegal immigration, deficit spending, income inequality, rising inflation, opioid addiction, rising taxes, and flight wealth, Warren focuses on the banking sector.
Deaton argues that Warren’s emphasis on stable coins distracts from more pressing local issues. He believes this reflects a broader trend where political agendas are taking precedence over real investor protection. Deaton’s criticism of Warren’s approach aligns with his broader concerns about the SEC’s regulatory strategy under Gensler.
Read also: Ripple CLO welcomes Senate vote to overturn SEC anti-crypto rule
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Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. I write a lot on topics like blockchain, cryptocurrency, tokens, etc. for numerous publications. My goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.
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