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Highlights
- John Deaton claims the SEC killed LBRY without allegations of fraud, costing jobs and millions.
- Ripple spent over $150M on legal fees fighting non-fraud charges, affecting global operations.
- Despite paying a $30M fine, Kraken faced further SEC lawsuits, escalating legal costs.
Pro-XRP Lawyer John E. Deaton has urged for an end to the “crypto wars” led by the U.S. Securities and Exchange Commission (SEC). Deaton’s statement follows a series of high-profile legal battles involving major entities such as Ripple, LBRY, Coinbase, and others, which he argues have consumed substantial resources without addressing substantive fraud.
John Deaton Urges US Regulators to Drop Ongoing Crypto Cases
In a lengthy post on X, John Deaton, an attorney known for his support of Ripple and other crypto companies, vocalized his frustration with the ongoing regulatory actions by the US SEC. Deaton highlighted several cases where crypto companies have faced legal challenges and financial burdens despite not being accused of fraud. He argued that these cases have drained company resources and impacted the crypto industry negatively.
Additionally, John Deaton pointed out several instances where companies incurred substantial losses due to legal battles with the Securities and Exchange Commission. Notably, he mentioned that Ripple had spent over $150 million on legal fees in a case that did not involve any fraud allegations.
This situation has affected Ripple’s operations and influenced its partnerships and market activities, with consequences for XRP holders.
The Pro-XRP Lawyer added,
“Having filed amicus briefs in the Ripple, LBRY, and Coinbase cases, representing users, developers, individual investors, and content providers, I’m sitting here thinking about the incredible waste of time, energy, money, and resources wasted during the last 4 years.”
Despite John Deaton’s call for a reduction in aggressive SEC actions, the regulator continues its strict oversight. Recently, the US SEC sued Digital Currency Group, citing failure to disclose risks tied to Three Arrows Capital, resulting in a $38 million settlement.
Impact on Companies and Innovation
Further illustrating the impact of US SEC actions, Deaton referenced the case of LBRY, a platform that was shut down by the SEC without any fraud charges. The closure led to job losses and financial setbacks for its founder, Jeremy Kauffman.
John Deaton emphasized,
“NO FRAUD was committed or even alleged. There was a very active LBRY community and ecosystem of users and content providers utilizing the platform. LBRY employees lost jobs. An American entrepreneur, Jeremy Kauffman, lost millions due to legal fees.”
Additionally, despite Kraken’s attempt to settle by paying a $30M fine, the platform faced subsequent lawsuits, showing a pattern of aggressive regulatory pursuits. According to the Pro-XRP Lawyer, these moves threaten innovation and the growth of the crypto sector.
Reevaluation of SEC’s Approach To Crypto Regulations
John Deaton’s appeals reflect a growing concern within the crypto community about how the US SEC handles cryptocurrency regulations. The legal expert suggests that a balanced approach would support the development of the crypto industry and uphold the integrity of regulatory practices.
In addition, other crypto leaders have also voiced their perspectives as Gary Gensler departs from the Securities and Exchange Commission. Most recently, Ripple CLO Stuart Alderoty openly mocked Gensler’s exit, signaling a potentially transformative shift in SEC’s crypto enforcement.
Despite criticism from figures like John Deaton, outgoing Securities and Exchange Commission Chair Gary Gensler insists on the necessity of strict regulatory oversight for the crypto market. He emphasizes the importance of enforcement actions to safeguard investors from risks in the crypto industry.
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