- John Deaton, a prominent pro-XRP attorney, has pledged to hold the SEC accountable for significant financial losses endured by XRP investors.
- Deaton claims that investors lost $15 billion due to alleged misconduct by the SEC.
- He also mentioned that Senator Elizabeth Warren failed to act on behalf of her constituents, some of whom were affected XRP investors.
Discover how John Deaton plans to hold the SEC accountable for a $15 billion loss suffered by XRP investors due to alleged misconduct and what this could mean for future regulatory actions.
John Deaton’s Commitment to Accountability
John Deaton, known for his strong advocacy for XRP investors, has vowed to hold the US Securities and Exchange Commission (SEC) accountable for the substantial $15 billion loss experienced by XRP investors as a result of the SEC’s lawsuit against Ripple. Deaton, who is running against Senator Elizabeth Warren in the Senate elections, has made this promise a cornerstone of his campaign, emphasizing the need for accountability and reform within regulatory bodies.
SEC’s Alleged Misconduct and Overreach
In a recent statement, Deaton highlighted the SEC’s “misconduct and gross overreach,” which he believes caused significant harm to 75,000 small XRP investors. According to Deaton, the Commission’s actions were not aligned with their mandate to protect investors, but rather focused solely on winning the lawsuit against Ripple. Despite his efforts to engage with Senator Warren, who sits on the banking committee overseeing the SEC, he received no response or support, further underscoring his argument for regulatory reform.
Legal Battles and Judicial Support
During the early stages of the Ripple lawsuit, Deaton filed a Writ of Mandamus against the SEC, arguing that XRP could not be classified as a security. His legal reasoning was eventually supported by Judge Analisa Torres in a landmark 2023 ruling, which declared that XRP was not a security in itself, even if Ripple’s sales were considered investment contracts. This ruling vindicated Deaton’s stance and provided substantial relief to XRP investors who had been adversely affected by the lawsuit.
Senator Warren’s Inaction
Deaton further criticized Senator Warren for her inaction despite representing 627 Massachusetts-based XRP holders in the Senate. He pointed out that Warren’s consistent anti-crypto stance and failure to advocate for these investors reflect a broader issue of regulatory negligence. Her lack of response, despite being a member of the committee overseeing the SEC, exemplifies the need for new leadership that truly represents and protects investor interests.
Proposed Legislative Reforms
As part of his commitment to reform, Deaton has proposed two legislative bills aimed at addressing regulatory issues within the SEC. The first bill seeks to expose and address regulatory capture, ensuring that regulatory decisions are made in the best interests of the public rather than corporate agendas. The second bill proposes a statutory bar preventing regulators from joining industries they once oversaw for a period of 3-5 years, aiming to prevent conflicts of interest and ensure impartiality in regulatory actions.
Conclusion
John Deaton’s campaign to hold the SEC accountable for the $15 billion loss suffered by XRP investors highlights significant issues within regulatory bodies that need addressing. By advocating for legislative reforms and criticizing existing leadership, Deaton aims to ensure greater transparency, accountability, and protection for investors. As the Senate elections approach, his proposals for change resonate with many who seek a fairer and more responsible regulatory environment.
