Deaton's Stinging Accusation

John Deaton, a pro-XRP lawyer and a critic of U.S. crypto regulations or their lack thereof, criticized the Securities and Exchange Commission (SEC) and Senator Elizabeth Warren. He accused both of prioritizing their political agendas while overlooking investors' protection.

Deaton, a Senate candidate seeking to unseat Warren, has accused SEC Chairman Gary Gensler of failing to safeguard individual investors, which he says has led to significant financial harm.

Deaton's remarks follow recent Senate discussions in which Warren urged a vote against SAB 121. Deaton claims that despite his private efforts and legal battles, he has done more to protect investors than Gensler.

He cites a favorable ruling from a Democratic judge appointed by former President Obama as evidence of his commitment to consumer protection.

Regulatory Failures Exposed

Deaton has long advocated sensible crypto regulation aimed at protecting investors from fraudsters like Sam Bankman-Fried (SBF). He criticizes the SEC's failure to prevent high-profile collapses such as FTX, Terra, and Celsius.

Deaton argues that the SEC needs to correctly target reputable entities like Ripple, Coinbase, Kraken, Uniswap, Dragonchain, LBRY, and MetaMask while neglecting fraudulent actors. This inconsistency, he believes, has left the market vulnerable and investors at risk.

Adding to his list of grievances, Deaton alleges that Gensler met with SBF multiple times but has not disclosed the details of these meetings.

He suggests that SBF's significant donations to the current administration facilitated his extraordinary access to Gensler and other regulators. Deaton believes this points to a more critical regulatory failure and mismanagement issue.

Contradictions and Inconsistencies

Deaton highlights the SEC's contradictory actions, such as accelerating Coinbase's IPO only to sue the company later, as a clear illustration of regulatory inconsistency.

He asserts that the SEC is being weaponized under Warren's influence to support her political agenda, leaving investors financially devastated. This criticism aligns with Deaton's broader concerns about the SEC's regulatory strategy under Gensler.

Earlier reports indicated that Deaton had slammed Warren's letter to Treasury Secretary Janet Yellen. The letter highlighted concerns over stablecoins and their potential exploitation by terrorist organizations and rogue nations. Deaton views this as a misplaced priority on Warren's part. He argues that while Massachusetts faces several crises, such as illegal immigration, deficit spending, income inequality, soaring inflation, opioid addiction, increased taxation, and wealth flight, Warren is focusing on behalf of the banking industry.

A Broader Trend

Deaton contends that Warren's focus on stablecoins diverts attention from more pressing local issues. He believes this reflects a broader trend of political agendas taking precedence over genuine investor protection.

Deaton's criticism of Warren's approach aligns with his broader concerns about the SEC's regulatory strategy under Gensler.

As the debate over crypto regulation continues, Deaton's strong words will resonate with many in the crypto community who feel their interests are being overlooked.