Prominent pro-XRP attorney John Deaton has called for SEC Chairman Gary Gensler to step down, in the wake of several high-profile court disputes and growing disapproval of the SEC's regulatory strategy under Gensler.
Deaton's criticism of Gensler intensified
Deaton has been a vocal critic of the SEC's strategy, particularly highlighting its actions against companies like Ripple, LBRY, and Coinbase. He confirms that The SEC's relentless pursuit of Ripple executives Brad Garlinghouse and Chris Larsen exemplify the harmful and hostile regulatory stance that can have long-term negative effects on the industry.
Furthermore, Deaton participated as amicus curiae in these cases, arguing that the SEC's methods under Gensler were arrogant and harmful to the development of the growing digital asset industry.
The SEC's strategy for implementing and supporting securities regulations in the digital asset market is the main topic of discussion. The SEC has introduced a number of enforcement actions to ensure that it has regulatory authority over certain digital assets because they are securities.
This strategy has led to multiple lawsuits, which has had a significant impact on the laws regulating cryptocurrency markets.
The turning point in Deaton's public outcry was a recent ruling that fined the SEC $1.75 million for misleading conduct in… Debt fund issue. The decision has put a spotlight on the SEC's enforcement tactics, which Deaton and others in the cryptocurrency community say are overly aggressive and financially harmful.
A call for a change in SEC leadership
One of the most controversial points has been the SEC's handling of the LBRY case. Deaton claims that SEC representatives publicly announced their intention to hobble LBRY with legal fees, a revelation that sparked widespread outrage within the cryptocurrency community. He argues that this is indicative of a broader pattern of bad faith actions designed to stifle innovation and put undue pressure on cryptocurrency companies.
I am very proud of the fact that I was one of the first people to participate in the battle @Gary Gensler's @SECGovserving as amicus curiae in @ripple, @LBRYcom And @coinbase cases. She filed suit against the SEC on January 1, 2021, and for more than three years argued that SEC lawyers were… https://t.co/ssOgWzgGuK
– John E. Deaton (@JohnEDeaton1) May 28, 2024
The SEC's efforts against other cryptocurrency groups have also been controversial, in addition to the debt fund case. For example, Ripple Labs and the classification of its XRP token as a security have become tangled in a legal dispute.
In his call for a leadership change, Deaton not only demanded Gensler's resignation, but also suggested his successor: Chris Giancarlo, the former head of the Commodity Futures Trading Commission (CFTC). Giancarlo, known for his more progressive, innovation-friendly approach to cryptocurrency regulation, is seen by Deaton as the ideal candidate to lead the SEC toward a more balanced and supportive regulatory framework.
The debate over how to regulate digital assets is heating up, with critics like Deaton claiming that the SEC's current approach is harmful and unpredictable. They believe that a shift in leadership is necessary to foster a more conducive environment for the growth of the cryptocurrency market.
Featured image from Pexels, chart from TradingView