Congressman Warren Davidson has reiterated his push to fire U.S. SEC Chairperson Gary Gensler following sharp criticism by pro-XRP attorney John E. Deaton.
The latest enforcement action from the SEC has triggered a series of reactions from the broader crypto community. Kraken, the latest victim, joins Binance, Coinbase and Ripple as one of the crypto-focused entities targeted by the regulatory agency.
Deaton Blows Hot
Reacting to the lawsuit, Deaton, the founder of CryptoLaw, accused Gensler of being a despicable and dishonorable regulator. According to Deaton, Gensler knew that Kraken believed it was escaping the SEC’s enforcement by willingly settling the agency’s earlier charges.
Recall that the SEC charged Kraken in February for offering its staking-as-a-service program, a project the agency believes represents an investment contract, without proper registration. Kraken agreed to pay a $30 million fine to settle the charges.
@GaryGensler is a despicable and dishonorable regulator. He knew that @krakenfx believed it was buying peace for the $30M. I know some people are critical of it’s choice to settle and pay the $30M. I wanted them to fight as well. But when you decide to fight, $30M takes you only… https://t.co/WeF4YTMfip
— John E Deaton (@JohnEDeaton1) November 21, 2023
Amid the SEC’s recent enforcement against Kraken, several industry commentators have criticized the exchange for settling the earlier charges.
Deaton noted that he understands the reason behind Kraken’s decision to settle those charges. According to him, fighting the SEC would have cost more for Kraken.
“I wanted them to fight as well. But when you decide to fight, $30M takes you only so far, like maybe only 1/3 of the way – if you’re lucky. Ask Ripple and Brad Garlinghouse, who spent $150M plus so far, and is STILL paying millions in legal fees.”
He acknowledged that he is not aware of the motivation or mechanics involved in the settlement decision. However, he expressed confidence that the firm discussed actions such as staff layoffs.
“When the belief is $30M buys you peace and keeps good people employed, I understand why a company makes it. Unfortunately, Gensler doesn’t give a shit about those same employees or investors. He’s a disgrace and I can’t wait to see him go down,” Deaton concluded.
Rep Davidson Wants Gensler Out
Reacting to Deaton’s comments, U.S. Rep. Warren Davidson brought back attention to the SEC Stabilization Act he proposed in June. According to Davidson, the agency’s latest enforcement against Kraken suggests that now is the time to fire Gensler.
— Warren Davidson 🇺🇸 (@WarrenDavidson) November 21, 2023
Recall that Davidson introduced the Stabilization Act in the House of Representatives on June 12. The act seeks to carry out a reform of the Securities and Exchange Commission, with one of its provisions looking to remove Gensler as Chairperson.
As The Crypto Basic reported in June, shortly after the introduction of the bill, Deaton expressed concerns that it might not pass.
Despite stressing that Gensler’s ideology aligns with the status quo in the U.S. government, Deaton emphasized that the SEC Chair’s days are numbered. Five months later, Davidson continues to advocate for his sack.