Why Pro-XRP Lawyer John Deaton Calls For Investigation Into SEC Chair Gary Gensler

Republished By Plato

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Former Marine-turned-class-action lawyer John E. Deaton threw shade at SEC chairman Gary Gensler on Thursday, condemning his performance as a regulator.

Gensler has previously been accused of forcing the digital assets industry into a regulatory framework that’s neither applicable nor compatible. Rather than providing the necessary clarity, the official has opted to send Wells Notices to several crypto-focused firms this year.

“I Look Forward To The Day He Is Investigated”

Pro-XRP lawyer John Deaton has taken aim at Gary Gensler.

In a recent tweet, Deaton noted that the SEC chair should be investigated in the near future. His logic stems from the fact that Gensler has stepped up scrutiny of digital asset firms this year and declared all cryptocurrencies besides bitcoin fall under securities rules, all while deliberately failing to pursue “Chinese executives’ crimes in US capital markets”, per a tweet that Deaton commented on.

The XRP amicus curiae posited that Gensler acts in the interest of a “select few”, suggesting he is an agent of Wall Street’s financial elite.

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The original tweet authored by Brian Costello states that Gensler and his agency covered up “a multibillion-dollar Chinese criminal enterprise defrauding US investors”. During Costello’s interview with the FBI, one federal agent allegedly “believed there were significant offenses and inquired about SEC’s lack of response.”

According to Costello, these actions, coupled with the SEC’s furious attack on the fast-growing crypto ecosystem, are “accelerating the collapse of the dollar.”

SEC’s Tough Stance On Crypto

Following the quick and unexpected bankruptcy of mega crypto asset exchange FTX late last year, the SEC — under Gary Gensler — has quickly targeted prominent U.S. crypto brands.

Back in January, it slapped Genesis and Gemini with charges for offering unregistered securities. A month later, it fined cryptocurrency exchange Kraken $30 million for breaking securities laws.

Then, last month, the Commission issued a Wells Notice to Coinbase, the largest exchange in the U.S., claiming that its staking products constituted unregistered securities.

And in its latest enforcement action earlier this week, it alleged that Seattle-based exchange Bittrex simultaneously operated a national securities exchange, broker, and clearing agency in violation of federal securities law. The agency further claimed that major cryptocurrencies Dash, Algorand, OMG Network (OMG), and others bear characteristics of securities.

These actions have some politicians — Republicans in particular — fuming, with some proposing legislation to boot Gensler from office.