At the forefront of a Twitter discussion, John Deaton, a prominent attorney and founder of CryptoLaw, raises concerns about the Securities and Exchange Commission’s (SEC) lawsuit against Ripple Labs, questioning the underlying motives. Deaton insists that the American public should be informed about the discussions between former SEC Chair Jay Clayton and Gary Gensler on December 21, 2020.
Clayton’s public calendar shows him meeting with Gensler twice in his last month in office. The first meeting occurred on December 14, 2020, followed by another on December 21, 2020. Clayton’s previous meeting with Gensler occurred a day before the lawsuit against Ripple and its executives. On December 22, 2020, Clayton directed the Enforcement Division to initiate legal action against Ripple.
Deaton finds it peculiar that the SEC filed such a significant case when Clayton left the commission. He describes the Ripple lawsuit as the most significant non-fraud enforcement action since 1946, implying that unknown motives may be at play.
High-Ranking SEC Officials’ Departure Raises Questions Amid Ripple Lawsuit
It is worth mentioning that several other high-ranking SEC officials, including the directors of Corporation Finance, Trading and Markets (T&M), and Enforcement Division, also left their positions around the same time. This mass exodus of key figures within the SEC has raised apparent concerns and has called into question the commission’s use of discretion, as pointed out by SEC’s former commissioner Prof. Joseph Grundfest.
Deaton argues that this series of events prompts one to question the true motive behind the decision to pursue the Ripple lawsuit. He suggests that the SEC should be transparent and explain their actions.
In a recent interview, Clayton expressed his concerns regarding the new enforcement strategy of U.S. regulators. He criticized bringing multiple lawsuits against crypto businesses, even those the commission believes are unlikely to succeed. Clayton believes this new ethos of U.S. regulators represents a fundamental shift from the traditional view of the government’s role held by Americans.
Deaton’s comments come in response to a tweet by Brian Costello, who raised the issue of Clayton potentially concealing China-related crimes. Deaton has been actively involved in the ongoing SEC vs. Ripple lawsuit, conducting live broadcasts to address various aspects of the case.
Furthermore, Deaton sought to dispel misconceptions circulating within the crypto community. He stated that there is no hidden agenda or stealthy plot behind the lawsuit and affirmed that everything about the case is genuine.
According to Deaton, as the SEC’s legal confrontation with Ripple continues, there is speculation that the case could eventually escalate to the Supreme Court if either party challenges Judge Torres’ summary judgment. The final verdict in this lawsuit can potentially bring about far-reaching consequences for the entire cryptocurrency industry.
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