Emily Walker
John Deaton, the lawyer advocating for more than 75,000 XRP holders in the case involving Ripple and the SEC, has expressed strong views on President-elect Donald Trump’s choice of Paul Atkins to lead the US Securities and Exchange Commission (SEC). Deaton shared his thoughts on X, outlining four essential steps Atkins should take immediately after taking office.
Deaton stated, “If Paul Atkins doesn’t fire, or at least demote, certain individuals and completely dismantle the crypto unit, he’s not the right pick. Period!”
Four Key Actions Recommended by Lawyer Deaton for Atkins
Firstly, Deaton believes that those accountable for the handling of the Debt Box case should be removed to help restore the SEC’s credibility and accountability. He stated, “Fire all individuals involved in the Debt Box fiasco.”
Secondly, he advises Atkins to “fire and/or demote individuals currently appointed by Gensler in leadership roles.” Deaton insists that Atkins should bring in a new team that embodies his principles and aligns with “Donald Trump’s vision of the Crypto Capital of the World,” distancing from the previous regime led by Gary Gensler.
Thirdly, Deaton calls for stating clearly that decentralized finance (DeFi) and self-custody do not fall under the SEC’s oversight, which he sees as a way to prevent excessive regulation and encourage innovation in this sector.
Lastly, he recommends that the specialized crypto unit within the SEC be eliminated. Deaton proposes establishing a general fraud unit that addresses all forms of fraud cases, promoting a more unified approach to regulation.
Deaton’s comments were in response to John Reed Stark, the former SEC Internet Enforcement Chief. Stark remarked that outgoing Chair Gary Gensler has been “quietly working behind the scenes” to maintain influence at the SEC, even after his departure. He mentioned that Gensler had recently elevated three notable crypto-enforcement attorneys to senior positions within the agency.
Stark noted that these promotions, which have not been publicly disclosed, indicate that Atkins will face tough circumstances right from the start, asserting, “Get ready for World War III on day one, Chair Atkins, because these three crypto-enforcement lawyers, who are now in charge, are some of the best in the business and will not roll over easily.”
He cautioned the crypto sector, “Fail not at your peril, Big Crypto, because the SEC has not quite given up yet.”
Atkins, a former SEC commissioner known for his positive outlook on the crypto industry, has inspired hope among digital asset advocates. His nomination suggests a potential change from the previously strict enforcement strategies. Trump revealed his intention to nominate Atkins earlier this week.
As of now, XRP is trading at $2.37.