Pro-XRP attorney John Deaton said Americans need to know the real motive behind the SEC Vs. Ripple lawsuit.
CryptoLaw founder attorney John Deaton has taken to Twitter to question the real motive behind SEC’s lawsuit against Ripple Labs.
In a tweet yesterday, the prominent cryptocurrency advocate said Americans need to know what former SEC Chair Jay Clayton discussed with Gary Gensler on December 21, 2020.
Brian, what we need to know is what precisely was discussed between Clayton and Gensler on December 21, 2020, the day before Clayton directed the lawsuit against @Ripple to be filed (Clayton’s last full day at work). It is highly unusual to file a case of this magnitude (its only…
— John E Deaton (@JohnEDeaton1) July 2, 2023
Clayton Met Gensler Twice Before Leaving SEC
According to Clayton’s public calendar, the former SEC chairman officially met with Gensler twice in his last month in office. The first meeting occurred on December 14, 2020, and the second on December 21, 2020.
Clayton’s last official meeting with Gensler took place a day before the commission sued Ripple and two of its execs: Brad Garlinghouse and Chris Larsen. On December 22, 2020, Clayton directed the Enforcement Division to file the lawsuit against Ripple.
Deaton’s Reaction
Reacting to the development, Deaton said it is unusual for the SEC to file a case of this magnitude on the day the chairman – Clayton – left the commission. Deaton described the Ripple lawsuit as the most significant non-fraud enforcement action since 1946.
It is worth noting that other top SEC officials, including the directors of Corporation Finance, Trading and Markets (T&M), and Enforcement Division, also left the commission within the same period.
Per Deaton, SEC’s former commissioner Prof. Joseph Grundfest described the departure of these top officials as a mass exodus that raised obvious concerns.
Prof. Grundfest also noted that the departure of Clayton and these top SEC directors “called into question the use of discretion” at the commission.
“another way of saying what is your real motive for filing this case?” said Deaton.
Crypto Enthusiast Calls for Clayton’s Investigation
Notably, attorney Deaton made the remark in response to a tweet by Brian Costello, who reacted to a recent Clayton interview.
As reported last week, Clayton voiced his concern with the new enforcement strategy of United States regulators, which involves bringing multiple lawsuits against crypto businesses, including those the commission believes won’t be successful.
Clayton noted that the new ethos of U.S. regulators is a fundamental shift from how Americans view the role of the government.
Commenting on the development, Costello said it is high time SEC whistleblowers shed more light on Clayton’s concealment of China-related crimes.
Maybe it's time to illuminate Jay Clayton's concealment of China-related crimes when he was @SECGov Chairman. I sincerely hope that SEC's internal whistleblowers step up to safeguard our nation. @SenWarren @SenSherrodBrown https://t.co/JGkWDbMh2R
— Brian Costello (@bpcostello) July 2, 2023
Deaton Continues Commenting on SEC Vs. Ripple Case
Meanwhile, Deaton has continued to weigh in on the ongoing SEC vs. Ripple lawsuit. The prominent lawyer recently conducted a live broadcast, reacting to a series of issues regarding the lawsuit.
Furthermore, Deaton also addressed some misconceptions that are making the rounds within the crypto community. As reported, Deaton said there is no “secret plot” behind the lawsuit, adding that everything about the case is genuine.
He also speculated that the case could go up to Supreme Court, as one of the parties may appeal Judge Torres’ summary judgment.
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