John Deaton Calls Out Gary Gensler For Ties With Sam Bankman-Fried
Highlights
- John Deaton alleges SEC favoritism toward FTX's Sam Bankman-Fried, citing private meetings and a $10M political donation.
- SEC Chair Gary Gensler to resign on January 20, 2025, coinciding with Donald Trump's presidential inauguration.
- SEC secured $8.2B in financial remedies in FY 2024, with $4.6B from Terraform Labs and Do Kwon's securities fraud case.
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.
- KuCoin Secures ISO 27701 Certification, Boosting User Trust and Privacy
- Breaking: SEC Moves To Allow On-Chain Stock Trading Alongside Crypto Amid Tokenization Push
- Analyst Eyes Solana ATH as 21Shares’ SOL-Focused Jupiter ETP Launches on Swiss Exchange
- Experts Predict Big ETH Rally on Bullish Options, Whales Signal Post-False Break
- US Shutdown: Bitcoin, Gold, and Silver Rally as Govt. Shutdown Odds Jump to 85% on Polymarket
- Analyst Predicts Dogecoin Price Surge as DOGE ETF AUM Hits $20M
- Ethereum Price Eyes $8,600 As Institutions And Whales Double Down
- Dogecoin Price Prediction – Chart Set-Up Highlights Perfect Buying Opportunity With Outflows Backing $0.45
- Bitcoin Price Set to Rebound Ahead of US Government Shutdown, NFP Data
- XRP Price Prediction: How XRP Could React After October 2025 SEC ETF Decisions
- Aster Price Prediction as US President Adds $110M Worth of Tokens to His Portfolio
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
