John Deaton Calls Out Gary Gensler For Ties With Sam Bankman-Fried

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As a seasoned researcher with extensive experience in the crypto realm, I find myself intrigued by the ongoing saga between John Deaton and Gary Gensler, the SEC Chair. Deaton’s accusations of favoritism towards Sam Bankman-Fried, the FTX founder, are noteworthy, especially considering the apparent lack of access granted to U.S.-based crypto executives like Brian Armstrong and Jesse Powell.

Lawyer John Deaton, who supports XRP, has raised doubts about the connection between U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler and FTX founder Sam Bankman-Fried (SBF). This statement was made following the SEC’s announcement of significant financial penalties in its enforcement actions during fiscal year 2024.

John Deaton Accuses SEC of Favoritism Toward Sam Bankman-Fried

In a recent article on X, John Deaton expressed his disapproval towards Gary Gensler for privately meeting with FTX’s Sam Bankman-Fried, while allegedly denying similar opportunities to U.S.-based crypto leaders like Coinbase CEO Brian Armstrong and Kraken’s Jesse Powell. Deaton argued that such actions by the SEC suggest bias in favor of Bankman-Fried.

Deaton further highlighted the $10 million donation by Bankman-Fried to politicians as another potential factor allowing FTX to participate in regulatory discussions. He questioned whether this financial link was the reason for the favorable treatment shown to the overseas cryptocurrency exchange, and criticized Gary Gensler for it.

The criticism from the lawyer supporting XRP emerges concurrently with Gary Gensler’s announcement that he will leave his role as SEC Chair, which is set for January 20, 2025. This declaration was made in an SEC press release and endorsed by Gensler on platform X, occurring simultaneously with Donald Trump’s inauguration as the 47th president of the United States.

SEC Reports Record $8.2 Billion in Financial Remedies

Moreover, in the year 2024, the SEC reported an impressive record of securing approximately $8.2 billion in financial restitutions. This figure marks the highest amount ever obtained by the agency. However, despite this significant milestone, the Commission observed a decrease of 26% in total enforcement actions compared to the previous fiscal year, bringing the total to 583 cases filed. Out of these, 431 were categorized as independent actions, signifying a 14% drop from the fiscal year 2023.

Remarkably, about 4.6 billion dollars in financial resolutions resulted from the Securities and Exchange Commission’s (SEC) lawsuit against Terraform Labs and its founder, Do Kwon. This amount constituted more than half of the total recoveries for that year.

Currently, John Deaton is leveraging the latest moves by the SEC to strengthen his advocacy for regulatory changes. He, an attorney supportive of XRP, contends that the SEC’s strategy employs antiquated laws to govern modern technologies.

Furthermore, after Gensler’s anticipated departure, John Deaton has expressed support for Brad Bondi as a possible successor for Gensler. Deaton pointed out the importance of establishing a transparent and equitable regulatory system that encourages advancement in the blockchain sector.

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2024-11-26 01:11