Lawyer John E. Deaton criticizes the SEC for its unfair treatment of cryptocurrencies and questions its omission of a key regulatory test.
Deaton highlights broader government corruption concerns, including allegations of misuse of power and conflicts of interest.

John E. Deaton, a well-known XRP advocate, has harshly criticized the US Securities and Exchange Commission (SEC) and its approach to cryptocurrency regulation in a post on X. Deaton’s criticism was spurred by his colleague James “MetaLawMan” Murphy’s observation that the SEC had overlooked an important aspect of cryptocurrency regulation in recent hearings involving large cryptocurrency exchanges Coinbase and Binance.

If people haven’t figured it out by now, let me help you: the speech was a pure money grab – nothing more, nothing less.

Whether you believe in #ETH or whether Ethereum is a great technology or ecosystem, is not the point. As I’ve said before, had the @SECGov sued @ethereum… https://t.co/qSuqzKeUsU

— John E Deaton (@JohnEDeaton1) January 23, 2024

 

Murphy pointed out that the SEC forgot to cite Bill Hinman’s “sufficiently decentralized” standard in its talks on whether crypto tokens are securities. Deaton strongly criticized this omission, highlighting a substantial discrepancy in the SEC’s regulatory framework. This omission raises concerns about the SEC’s neutrality and thoroughness in regulating cryptocurrency.

Ethereum’s “Free Pass” and Deaton’s Response

Deaton’s complaint goes beyond the SEC’s handling of crypto guidelines. He focuses on what he calls Ethereum’s “free pass” in the eyes of the SEC. While not naming specific individuals or entities, Deaton claims that Ethereum received special treatment. He argues that the SEC took legal action against Ethereum. He would have defended it with the same legal approach for XRP. This statement emphasizes his dedication to equal treatment in the cryptocurrency industry.

Another concern for Deaton is the SEC’s unusual silence on Ethereum before and during Bill Hinman’s speech. Given Ethereum’s size in the cryptocurrency market, he questions why the SEC hasn’t looked into its regulatory position. Deaton sees this as a lack of consistency and transparency in the SEC’s strategy.

Allegations of Corruption in the Current Era

Deaton’s statement delves into a more significant concern, what he labels as the “Corruption Era.”  He outlines a series of instances that he believes highlight corrupt practices within the political realm:

Insider Trading and Pandemic Briefings: Deaton references instances where members of Congress allegedly exempted themselves from insider trading laws, taking advantage of non-public information regarding the pandemic and government shutdown to profit from stock market movements. He also mentions controversial dealings involving politicians such as Nancy Pelosi, Hunter Biden, and former President Donald Trump.
Favoritism towards Credit Card Companies: He points out a situation where the Speaker of the House presented a bill favoring credit card companies like Visa. Subsequently, the Speaker and her husband reportedly received millions in pre-IPO shares of Visa, which were not available to the public, leading to substantial financial gains.
Use of Political Office for Personal Gain: Deaton highlights allegations of the Vice President using his position to secure financial benefits for his family while running for President.
Foreign Influence and Favors: He discusses foreign governments and nationals intentionally staying at the President’s resorts and hotels, potentially to secure future favors.
Acceptance of Foreign Donations: Deaton mentions the Secretary of State accepting donations and money from foreign countries and nationals while holding her position and meeting with those donors in her official capacity.
Post-Government Appointments: Deaton brings up cases where government officials, like the Chairman of the FDA, left their government posts and, shortly after that, assumed positions on the boards of prominent corporations.
Donations and Regulatory Access: He alleges that the CEO of an offshore exchange, with ties to Democratic operatives, donated significant sums to the incumbent administration to gain access to regulators, resulting in private meetings with key regulatory figures and members of Congress.

 

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Filed under: Bitcoin - @ January 24, 2024 6:09 am