A pro-XRP lawyer has criticized Securities and Exchange Commission (SEC) Chair Gary Gensler for allegedly showing favoritism towards certain cryptocurrency platforms, particularly an offshore crypto exchange. The lawyer, Jonhn Deaton, accused Gensler of granting special treatment to FTX founder Sam Bankman-Fried by holding private meetings with him while denying similar requests from other crypto executives such as Kraken founder Jesse Powell and Coinbase CEO Brian Armstrong.
Deaton demanded transparency from Gensler, urging him to disclose the details of his discussions with Bankman-Fried. He questioned why the FTX founder was granted multiple secret meetings with the SEC head while American CEOs were denied the opportunity to meet with him. Deaton suggested that Bankman-Fried’s substantial political donations may have influenced his access to regulatory discussions with the SEC, insinuating that a $10 million donation could have secured favorable treatment for FTX.
The lawyer highlighted the unequal treatment of crypto firms by Gensler, pointing out that Ripple, for example, faced a four-year lawsuit from the SEC while FTX seemingly received preferential treatment. Deaton emphasized the need for clear and fair policies on cryptocurrency regulation to foster growth in the digital asset sector.
In response to the criticism, Gensler announced his resignation from the SEC, effective in January of the following year. Deaton suggested Brad Bondi as a potential replacement for Gensler, emphasizing the importance of establishing equitable regulations that support the development of the cryptocurrency industry.
As the controversy surrounding Gensler’s alleged bias towards certain crypto entities continues to unfold, the call for transparency and fairness in regulatory practices within the digital asset space grows louder. The outcome of this situation could have significant implications for the future of cryptocurrency regulation and the relationships between regulatory bodies and industry players.