Lawyer John Deaton accused the SEC of pursuing honest crypto companies while ignoring fraudsters like Sam Bankman-Fried and Do Kwon.
SEC Accusations: Cases of SBF and Do Kwon
John Deaton argues that the SEC has been too focused on legitimate crypto companies rather than pursuing fraudsters like Sam Bankman-Fried and Do Kwon. Deaton highlighted Bankman-Fried's meetings with key government figures and the alleged influence bought with $80 million in political contributions.
Legal Defeats and Dropping Case Against Coinbase
The SEC has faced significant legal defeats over its enforcement approach. One of the most contentious cases was against Coinbase, which was approved for an IPO in 2021 but soon accused of illegal operations. However, the SEC is now dropping the case against Coinbase, seen as a major win for the company.
New SEC Approach Under Trump Administration
Under Trump's administration, the SEC is reevaluating its policies and creating a new unit, CETU, to tackle cybercrime and financial misconduct, while focusing on fostering crypto innovation.
The SEC is under significant criticism for its enforcement approach in the crypto industry, leading to a shift in strategy and the creation of a new unit to enhance transparency and protect investors while allowing innovation to thrive.
