Pro-XRP Lawyer Calls Out US SEC Attorneys, Here’s Why

Pro-crypto lawyer John E. Deaton has accused U.S. Securities and Exchange Commission (SEC) attorneys of misconduct in their enforcement actions against crypto firms. He argues that their legal tactics have harmed businesses, investors, and the broader digital assets industry. More concerning, he noted that these crackdowns have failed to provide clear regulations.

John Deaton Heaps Claims Against US SEC Lawyers

It is important to note that Deaton has repeatedly criticized SEC lawyers for using unfair and aggressive enforcement strategies. 

In his recent X post, he points to a recent appellate court decision that found the SEC’s actions lacked a valid legal basis. Again, in the Ripple Labs case, a federal judge passionately condemned the commission attorneys for changing their arguments to suit their narrative while undermining the integrity of the court proceedings.

Beyond the inconsistent legal stance, Deaton argues that SEC lawyers have actively misled courts, damaging businesses financially. He pointed out cases where security agency attorneys were sanctioned for presenting false information, a tactic that resulted in companies losing a lot of money.

For example, LBRY, a blockchain-based platform, was driven into bankruptcy after a prolonged legal fight with the SEC. He added that Dragonchain faced similar pressure but survived despite the financial burden.

In addition, Deaton also faulted the US SEC’s handling of major crypto firms. Kraken, one of the industry’s largest crypto exchanges, faced legal action that many believe was an attempt to intimidate rather than regulate. 

According to John Deaton, SEC lawyers have used enforcement as a weapon, creating uncertainty and instability in the crypto industry in America. These lawyers do this rather than providing a clear regulatory ground.

SEC and End to Crypto Crackdowns

Under President Donald Trump’s administration, the security agency is shifting its approach. Reports indicate that the regulator has now paused or dismissed at least eight cases against crypto firms, including ConsenSys, Kraken, and Coinbase. 

Following the dismissal of the Coinbase suit, former US SEC enforcement executive John Reed Stark predicted a pause in Ripple Labs’ lawsuit.

Similarly, this recent development comes amid growing criticism from lawmakers and industry leaders who argue that excessive enforcement has stifled innovation and caused billions in investor losses. 

The Future of Crypto Regulation

Notably, as reported by CoinGape, the SEC has established a Crypto Task Force to reassess its approach to digital asset regulation in response to growing concerns. 

According to SEC Commissioner Hester Peirce, the Commission’s Crypto Task Force is a 15-man team comprising staff from various SEC divisions. Importantly, acting Chairman Mark Uyeda has indicated a move toward clearer regulatory guidelines rather than aggressive enforcement. 

Consequently, many in the crypto industry see this as a positive step toward restoring trust, engendering innovation, and ensuring compliance with the law.