A lawyer advocating for XRP has criticized SEC Chair Gary Gensler for showing favoritism towards certain cryptocurrency platforms. This accusation comes from revelations about Gensler having private meetings with Sam Bankman-Fried, the head of an offshore crypto exchange.
Concerns of Bias
Jonhn Deaton has raised questions regarding Gensler’s close ties with Bankman-Fried, suggesting that Gensler has been lenient towards the offshore exchange firm, while ignoring requests for meetings from other cryptocurrency executives.
Notably, prominent figures like Kraken’s Jesse Powell and Coinbase’s Brian Armstrong have been denied meetings with Gensler, prompting concerns over equal treatment in the digital asset landscape.
Why not release all correspondence and notes from your private meetings with the Bernie Madoff of Crypto – @SBF_FTX? Why did you meet with the CEO of an offshore exchange but not with American CEOs like @brian_armstrong and @jespow? Did the $10M that…
— John E Deaton (@JohnEDeaton1) November 25, 2024
The lawyer is calling for transparency from Gensler regarding his discussions with Bankman-Fried, explicitly asking for the release of details about their meetings.
Deaton stated, “Why not disclose all communication related to your meetings with @SBF_FTX, who has been likened to the Bernie Madoff of Crypto?”
A social media user noted that Bankman-Fried appeared to be granted multiple private meetings with Gensler while others were left out.
Another observer remarked that Ripple sought simple clarification from the SEC but has faced a lengthy four-year lawsuit.
Deaton pointed out that Gensler’s behavior hints at preferential treatment toward Bankman-Fried, undermining the principle of equal treatment for all firms in the crypto space.
Campaign Contributions
Deaton mentioned that Bankman-Fried has made “significant political donations,” which he theorizes may have influenced Gensler’s access to him for regulatory talks.
He asked, “Did Bankman-Fried’s $10 million donation facilitate his discussions with regulators? Was this your price?”
This suggests a potential correlation between the donation and favorable treatment from the SEC towards FTX, contrasting with the agency’s harsher stance toward domestic crypto companies.
Gensler’s Planned Resignation
Gensler has announced his intention to step down from his position in January, coinciding with the upcoming inauguration of President-elect Donald Trump, who has signaled plans to remove Gensler from the SEC.
In light of Gensler’s departure, Deaton proposed Brad Bondi as a suitable successor, asserting the need for clear and equitable cryptocurrency regulations to support the industry’s growth.
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