Pro-XRP lawyer John E. Deaton delivered a scathing critique of the Securities and Exchange Commission’s (SEC’s) legal team on March 17, alleging a pattern of unethical conduct and behavior that extends far beyond a single enforcement action. Deaton’s remarks, posted on X, call into question not only the SEC’s overall enforcement strategy but also the professional integrity of individual staff attorneys.
Pro-XRP Lawyer Calls Out SEC Attorneys
Deaton began his commentary by emphasizing the recent appellate court rulings that found the SEC’s actions “arbitrary and capricious”—a legal standard he describes as exceedingly difficult to meet, and indicative that no valid argument could justify the agency’s behavior in that instance. He reinforced this point by citing a separate federal judge’s criticism of SEC attorneys, where the court stated the lawyers were “hypocrites” who lacked “good faith” and “faithful allegiance to the law.” Deaton reminded his followers that these same attorneys were even sanctioned for committing fraud upon the court, underscoring that such a reprimand suggests they deliberately misled the judiciary to prevail in litigation.
He also spoke about smaller crypto projects and their founders, highlighting how some were threatened with drawn-out legal battles that would bankrupt them. Deaton singled out Jeremy Kauffman and the token project LBRY, which he claims was “bankrupted” by SEC tactics even though the token was legitimately being used for non-investment purposes. He maintains that Joe Roets and Dragonchain faced similar treatment, only managing to hold on through a shift in the political landscape. He also pointed to Kraken, suggesting that the enforcement strategy extended across the broader crypto industry.
Deaton concluded that the attorneys in question should not be allowed to shift blame onto former SEC Chair Gary Gensler. He argued, “I could go on and on. These lawyers don’t get to hide behind Gensler made me do it. They’ve earned it. Period.”
Deaton’s message came in response to a new Politico article by Declan Harty titled “Italian vendetta: SEC targeted by triumphant crypto industry.” The piece details a power reversal underway in Washington following the installation of a new administration and acting SEC Chair Mark Uyeda, who has halted or dropped numerous enforcement actions against firms such as Coinbase, Robinhood, and Gemini.
According to Politico, high-profile industry figures—including Coinbase CEO Brian Armstrong, Ripple’s top lawyer Stuart Alderoty, and Gemini co-founders Cameron and Tyler Winklevoss—have not only called for the SEC to adopt clearer rules but have also pushed to hold specific agency staff accountable for what they view as misconduct under previous leadership.
Harty’s reporting underscores a broader effort by these crypto leaders to stigmatize law firms that bring on senior SEC attorneys who managed crypto investigations. One former SEC employee speaking to Politico on condition of anonymity claimed to know of at least one interview that was abruptly canceled and one job offer that was rescinded specifically because of the firm’s ties to crypto. Meanwhile, William McLucas, a former SEC enforcement director, described the direct targeting of agency staff as “totally inappropriate,” arguing that the crypto industry ought to focus on moving forward rather than “singling out lawyers and saying, ‘We want them labeled as pariahs.’”
Yet the industry’s sense of betrayal appears to run deep. While Ripple’s Alderoty insists that the focus is on “accountability — not retribution,” anonymous sources suggest that some of the more provocative voices in crypto appear to be “grave dancing,” seeking public vindication now that the SEC’s posture has shifted. Industry observers note that despite the changed leadership and the agency’s pullback, the SEC is still the primary authority over significant portions of the crypto market, and a healthy long-term relationship with regulators remains essential to shaping policy.
At press time, XRP traded at $2.30.
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