Ex-SEC Chair Behind XRP Lawsuit Defends Bitcoin, John Deaton Demands Answers

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Gary Gensler, the former chair of the U.S. Securities and Exchange Commission (SEC), is back in the headlines following new remarks on crypto. In a recent CNBC interview, Gensler reflected on his tenure, defending the enforcement actions he led.

He said most cryptocurrencies outside of Bitcoin are speculative assets without real fundamentals. According to Gensler, the majority of tokens rely on “hype and momentum” rather than actual products or revenues. He warned that thousands of these tokens will eventually fail, calling many of them fraudulent. Bitcoin, however, was labeled as the “exception” since it does not meet the same criteria he applies to securities.

Gensler also pointed to high-profile scandals like Sam Bankman-Fried’s FTX collapse as proof of why stricter rules and investor protection measures are necessary. He maintained that his actions as SEC chair were in line with his responsibility to safeguard everyday investors.

John Deaton Questions Gensler’s Silence on SBF Meetings

Gensler’s comments drew an immediate reaction from John Deaton, the attorney well known for defending XRP holders in the Ripple case. Deaton took to social media, raising questions that mainstream outlets like CNBC have not asked Gensler.

Deaton said that while Gensler often brings up the failures of Sam Bankman-Fried (SBF) and FTX, interviewers never ask him about his private meetings with SBF before the collapse. Reports show that SBF met with Gensler and other regulators several times while also donating millions to U.S. politicians.

According to testimony, SBF contributed $10 million directly to the Biden administration and $72 million overall to political causes, gaining unusual access to policymakers. Deaton argued that journalists should press Gensler on whether he offered SBF favorable treatment, including the rumored possibility of a special “short form” registration process.