Deaton’s Critique
John Deaton, a prominent XRP lawyer, has accused SEC Chairman Gary Gensler of misleading Congress and fostering a culture of deceit at the agency. Deaton’s allegations stem from statements made by House Financial Services Committee Chairman Patrick McHenry, who asserted that Gensler had misled Congress about the regulatory status of Ether.
Deaton claims that Gensler’s actions have infected the entire SEC, resulting in a “win at all costs” approach that manipulates legal outcomes to fit the agency’s agenda. He cites examples of federal judges criticizing the SEC for this strategy.
SEC Commissioner Peirce’s Criticism
SEC Commissioner Hester Peirce has also criticized the agency’s approach, stating that it casts the SEC in a bad light and makes it a less effective regulator.
SEC’s Alleged Threats to Bankrupt Companies
Deaton’s brief also alleges that the SEC has threatened to bankrupt companies through litigation, a claim supported by a declaration from the founder of LBRY.
Gensler’s Contradictory Statements
Deaton points to contradictory statements made by Gensler, arguing that they demonstrate bad faith. Before becoming SEC Chairman, Gensler expressed concerns about the lack of regulatory clarity in digital asset markets. However, as Chairman, he has asserted that the rules are well-settled.
XRP Lawyer Community’s Reaction
Other XRP lawyers have criticized McHenry’s statement, arguing that the SEC has not made a legal determination on Ether and that Gensler did not misrepresent anything at the hearing. They also question how McHenry has held the SEC accountable for its actions.
