Deaton is candid about his belief in the “ETH Gate” theory, suggesting that the SEC has potential conflicts of interest, including connections to China.
John E. Deaton, an experienced attorney and notable figure within the XRP community, he turned to X (formerly Twitter) on Thursday, October 12 to signal his intention to write a letter to the Financial Services Committee (FSC), criticizing the lack of efficiency in addressing the United States Securities and Exchange Commission (SEC) through letters to its president, Gary Gensler.
On X (formerly Twitter), Deaton stated the following:
“I think I’m going to write a letter, addressed to the FSC, discussing the inadequacy of writing letters to @GaryGensler. True oversight is not about how many stern letters you write or how many warnings you give. It isn’t about voluntary compliance. True oversight is achieved involuntarily.”
This Enrages Pro-XRP Attorney Deaton
This tweet was a response to a post by Fox Business journalist Eleanor Terrett, who had highlighted that Oversight Committee Chairman Rep. James Comer was contemplating using subpoena power on Gary Gensler and the SEC, emphasizing the Committee’s exasperation at Gensler’s continued failure to comply with oversight requests.
Terrett quoted an anonymous former SEC source as saying, “I’ve never seen a request like this before, at least not at the SEC.” Highlighting Comer’s reputation, a Capitol insider chimed in, saying, “Comer is coming to play.”
In the letter to the SEC Chairman, the House Oversight and Accountability Committee expressed displeasure with the SEC’s apparent lack of cooperation on oversight requests. The Committee highlighted its fears about the SEC’s involvement in European social engineering schemes, citing them as transparency initiatives.
James Comer, Chairman of the Committee, noted that the documents provided by the SEC are already primarily in the public domain and are therefore ineffective in satisfying the Committee’s investigations. Reminding the SEC of its promise of collaboration made during the 118th Congress, Comer suggested that the Committee could turn to mandatory processes to ensure compliance.
He also drew parallels to the $6 million fine imposed on Goldman Sachs by the SEC for withholding data, indicating that the SEC should provide unobstructed access to its records.
What the Letter Could Be About
Although the specific topic Deaton wishes to address in his letter remains undisclosed, his defense of XRP and his criticism of both Gensler and the SEC are well known.
In another post yesterday, Deaton commented, “It seems blatantly clear that having a CCP connection provides a company with not only access to US regulators, but an investigative free pass. Where is Gary Gensler – the self-proclaimed cop on the beat? Does he and the SEC only investigate and sue non-fraudulent American companies like LBRY, Dragonchain, Kraken and Coinbase?”
He was referring to a comment by Marc Cohodes, who raised questions about ties between FTX’s Gary Wang and China, hinting at possible preferential treatments.
Surprisingly, in his recent hearing before the House Financial Services Committee, Chairman Patrick McHenry complained that SEC Chairman Gary Gensler had withheld documents requested from Congress for more than seven months, pointing to the refusal of the SEC to provide documents on the FTX collapse and the climate disclosure rule.
Recently, XRP was trading at $0.4817.
By Leonardo Pérez
