John Deaton, a lawyer representing a huge number of XRP holders in a lawsuit against the SEC, isn’t happy about the new SEC Chair, Paul Atkins. He’s laid out four things he thinks Atkins needs to do right away. Deaton basically says if Atkins doesn’t make these changes, he’s not the right person for the job.
Deaton’s Four Key Demands
Here’s Deaton’s list:
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Clean House (Debt Box Edition): Fire everyone involved in the mess-up known as the “Debt Box” case. This is about restoring trust and accountability at the SEC.
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Gensler’s Crew Needs to Go: Get rid of, or demote, anyone put in leadership positions by Gary Gensler, the previous SEC Chair. Deaton thinks Gensler was biased against crypto, and Atkins needs a fresh team that aligns with his (and Trump’s) vision of a crypto-friendly America.
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DeFi and Self-Custody are OFF LIMITS: Make it crystal clear that the SEC doesn’t have the authority to regulate decentralized finance (DeFi) and people holding their own crypto. This is about promoting innovation, not stifling it.
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Kill the Crypto Unit: The SEC’s special crypto unit is unnecessary, according to Deaton. He suggests a more general fraud unit that handles all types of fraud cases, instead of having a separate team just for crypto.
A Warning from a Former SEC Official
John Reed Stark, a former SEC official, issued a warning. He pointed out that Gensler quietly promoted several crypto-focused lawyers before leaving, and these lawyers are ready to keep up the tough enforcement. Stark basically said that Atkins is walking into a huge fight.
A Potential Shift in Approach?
Atkins’ appointment is seen as a positive sign by many in the crypto world. He’s known for being more pro-crypto than Gensler, so this could mean a big change in how the SEC handles crypto regulation.
