In a series of tweets, prominent crypto lawyer John Deaton leveled serious accusations against Senator Elizabeth Warren, a member of the Banking Committee, alleging misconduct in her oversight responsibilities of the Securities and Exchange Commission (SEC).
Deaton’s tweets come after Warren’s latest attack on crypto during an appearance on CNBC’s Squawk Box on Dec. 8. The senator said that illicit actors are continuing to use digital assets, and the U.S. should pursue a regulatory crackdown.
Conspiring with Gensler
According to Deaton, Senator Warren has overstepped her role by conspiring with SEC Chairman Gary Gensler. He claimed that Warren provided Gensler with pre-arranged questions and suggested answers ahead of Congressional hearings, which constitutes “fraudulent, coached testimony” — undermining the very essence of Congressional oversight.
Deaton’s allegations go further, implying a conflict of interest in Senator Warren’s approach to cryptocurrency regulation and her interactions with the SEC.
He highlighted that Warren had not questioned the SEC or Gensler about their interactions with Sam Bankman-Fried (SBF), CEO of the now-controversial offshore crypto exchange FTX despite her known stance as a staunch critic of Bitcoin and other cryptocurrencies.
This lack of scrutiny raises questions about the effectiveness of her oversight, especially considering her alleged close ties with SBF’s family, according to Deaton.
He added that there is a perceived inconsistency in Warren’s oversight as she has not pursued inquiries into significant failures in the sector, such as the SBF scandal or other high-profile crypto-related fraud cases.
Disregard for citizens’ concerns
Deaton also revealed that over 600 XRP holders in Massachusetts, who are constituents of Senator Warren, have sought her intervention in SEC matters without success. This, according to Deaton, reflects a disregard for the concerns of ordinary citizens in favor of a broader political agenda.
Deaton’s comments have sparked a debate about the role of Congressional oversight and the impartiality required in such positions. As a member of the Banking Committee overseeing the SEC, Warren’s actions, if as described by Deaton, could raise serious ethical and procedural questions.
These allegations come at a time when the role of cryptocurrency in the financial system and its regulation by bodies like the SEC are subjects of intense debate in Congress. The implications of Deaton’s accusations extend beyond Senator Warren, potentially impacting the broader discourse on financial regulation and oversight in the U.S.
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