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

Pro-XRP lawyer John Deaton has questioned the relationship between U.S. Securities and Exchange Commission (SEC) Chair Gary Gensler and FTX founder Sam Bankman-Fried (SBF). Deaton’s comments came in response to the SEC’s announcement of record-breaking financial remedies in its fiscal year 2024 enforcement actions.

John Deaton Accuses SEC of Favoritism Toward Sam Bankman-Fried

In a recent post on X, John Deaton criticized Gary Gensler for holding private meetings with FTX’s Sam Bankman-Fried while denying similar access to U.S.-based crypto executives such as Coinbase CEO Brian Armstrong and Kraken’s Jesse Powell. These actions according to John Deaton demonstrated favoritism by the SEC.

Deaton also pointed to the $10m contribution by Bankman-Fried to politicians as another reason that may have enabled FTX to enter the regulatory talks. The lawyer criticized Gary Gensler, he posed that this financial connection must have been behind the courtesy given to the offshore crypto exchange.

The Pro-XRP lawyer’s criticism comes as SEC Chair Gary Gensler announced he will step down from his position on January 20, 2025. The announcement, made via an SEC press release and confirmed by Gensler in a post on X, coincides with the inauguration of Donald Trump as the 47th president of the United States

SEC Reports Record $8.2 Billion in Financial Remedies

Additionally, the SEC announced it had secured $8.2 billion in financial remedies during fiscal year 2024. This was highest amount recorded by the regulatory body in its history. Despite this achievement, the Commission reported a 26% decline in total enforcement actions compared to the previous fiscal year, filing 583 cases. Of these, 431 were classified as “stand-alone” actions, representing a 14% drop from fiscal year 2023.

Notably, $4.6 billion of the financial remedies stemmed from the SEC’s case against Terraform Labs and its founder, Do Kwon. The judgment accounted for over half of the year’s total recoveries.

Meanwhile, John Deaton has used the SEC’s recent actions to renew his calls for regulatory reform. The pro-XRP lawyer argued recently that the agency’s approach relies on outdated laws to regulate emerging technologies.

In addition, following Gensler’s expected resignation, Deaton has endorsed Brad Bondi as a potential replacement for Gensler. John Deaton cited the need for a clear and fair regulatory framework that fosters innovation in the blockchain.