XRP Lawyer John Deaton Criticizes SEC Chair Gary Gensler as Coinbase Scores Partial Legal Victory
Pro-XRP attorney John Deaton has openly condemned SEC Chair Gary Gensler’s regulatory stance following a recent court decision in favor of Coinbase. The ruling, issued by the US Third Circuit Court, challenges the SEC’s lack of transparency regarding crypto regulations, intensifying debates around Gensler’s enforcement-driven approach.
Key Highlights
- John Deaton accused Gensler of leaving the SEC in disgrace over unclear crypto policies.
- The court ruled that the SEC must justify its denial of Coinbase’s request for regulatory guidance.
- Deaton calls for a regulatory overhaul and suggests abolishing the accredited investor rule.
John Deaton’s Criticism of Gary Gensler
In a post shared on January 14, Deaton argued that the SEC’s refusal to clarify crypto regulations has severely damaged its credibility. He also emphasized the need for reform under the leadership of the new SEC Chair, Paul Atkins, who is expected to bring significant changes during the Trump administration.
Deaton also challenged the accredited investor rule, which classifies individuals based on income and wealth, deeming it restrictive and inconsistent with free-market principles.
Coinbase’s Partial Win Against the SEC
The court ordered the SEC to explain its refusal to issue crypto-specific regulations in response to Coinbase’s 2022 petition. The petition sought clarity on digital asset classification and broader crypto regulatory guidelines. The judge ruled that while the SEC isn’t obligated to create new rules, it must clearly state its position:
“Instead of forcing the agency to issue new rules, we order it to explain its refusal. The agency could simply provide a definitive stance on crypto assets.”
Community Reaction to Coinbase’s Victory
Coinbase’s Chief Legal Officer Paul Grewal celebrated the court’s ruling, describing the SEC’s actions as “arbitrary and capricious.” Ripple’s Chief Legal Officer Stuart Alderoty also praised Coinbase’s legal win as a step toward fairer regulation.
Meanwhile, legal experts, including former SEC official James Farrell and pro-XRP lawyer Fred Rispoli, believe this ruling could set a precedent for future crypto-related cases and influence the incoming SEC leadership to adopt a more constructive approach toward the crypto industry.
