In a series of tweetsProminent crypto attorney John Deaton has made serious accusations against Banking Committee member Senator Elizabeth Warren, alleging misconduct in her Securities and Exchange Commission (SEC) oversight responsibilities.
Deaton’s tweets follow Warren’s latest attack on crypto during an appearance on CNBC’s Squawk Box on December 8. The senator said illicit actors continue to use digital assets and the United States should pursue a regulatory crackdown.
Conspiring with Gensler
According to Deaton, Senator Warren overstepped her role by conspiring with SEC Chairman Gary Gensler. He claimed that Warren provided Gensler with pre-arranged questions and suggested answers before the congressional hearings, which constitutes “fraudulent and coached testimony” – undermining the very essence of congressional control.
Deaton’s allegations go further, implicating a conflict of interest in Senator Warren’s approach to cryptocurrency regulation and her interactions with the SEC.
He pointed out that Warren did not question the SEC or Gensler about their interactions with Sam Bankman-Fried (SBF), CEO of the now controversial offshore crypto exchange FTX, despite his known position as a staunch critic of Bitcoin and d other cryptocurrencies.
This lack of oversight raises questions about the effectiveness of his surveillance, especially given his alleged close ties to SBF’s family, according to Deaton.
He added that there was a perceived inconsistency in Warren’s oversight because she had not conducted investigations into significant failures in the industry, such as the SBF scandal or other high-profile fraud cases related to cryptography.
Disregard for citizens’ concerns
Deaton also revealed that more than 600 XRP holders in Massachusetts, who are constituents of Senator Warren, sought his intervention in SEC matters, without success. According to Deaton, this reflects a disregard for the concerns of ordinary citizens in favor of a broader political agenda.
Deaton’s comments sparked a debate over 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 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 agencies like the SEC are the subject of intense debate in Congress. The implications of Deaton’s accusations extend beyond Senator Warren, and could impact the broader discourse on financial regulation and supervision in the United States.