Republican lawyer and Ripple (XRP) supporter John Deaton shared a TikTok video on his X account, featuring American comedian Jon Stewart warning about the "unchecked" spending of the U.S. Department of Defense. Deaton quoted the video, stating that this is why DOGE, led by Elon Musk, is "necessary."
Stewart emphasized the discrepancy between the Pentagon's budget and the reality faced by service members. "We’ve emerged from 20 years of war, and the Pentagon is getting a raise," Stewart remarked. "I can’t fathom why $850 billion for a department means soldiers still have to rely on food stamps. To me, that’s damn corruption."
Dragonchain's lawyer and cryptocurrency-supporting Republican John Deaton quoted a TikTok video featuring an interview on his X account, saying, "If you think Elon Musk's DOGE and Vivek Ramaswamy are unnecessary, watch this video."
Deaton, who also supports XRP, seemingly suggested that the Department of Government Efficiency (DOGE) could bring much-needed accountability to departments like the Pentagon.
Legal tensions in SEC U.S. cryptocurrency cases
Deaton's criticism extends to the ongoing legal conflict between the U.S. Securities and Exchange Commission (SEC) and various cryptocurrency companies, including the lawsuit against Dragonchain. The SEC has accused Dragonchain of offering unregistered cryptocurrency asset securities, similar to what it has done with Ripple Labs and the company's XRP token.
In a recent court filing related to the SEC lawsuit, Deaton criticized the agency's aggressive tactics, stating that some SEC lawyers continue to bully American entrepreneurs, especially those in the cryptocurrency space.
"Some lawyers at the SEC are continuing their bullying tactics in cryptocurrency litigation against American entrepreneurs," Deaton said on X. He added that Dragonchain, which originated from Disney, is "the most American company possible."
Court filings also raised concerns about the SEC's current approach to the litigation, pointing out upcoming leadership changes that could impact the agency's strategy.
"Changes are rapidly approaching for the SEC’s leadership and enforcement priorities," the filings state. "This case meets those criteria," referring to the anticipated shift away from non-fraud investor lawsuits or impending harm.
SEC Leadership Changes
As Deaton and other legal experts continue to challenge the SEC's enforcement strategies, the agency itself is undergoing a transition period. The departure of SEC Chair Gary Gensler, who has been heavily involved in cryptocurrency enforcement, has sparked speculation about the agency's future direction.
Gensler's tenure has been marked by aggressive actions against cryptocurrency companies, including high-profile lawsuits against Ripple, Coinbase, and Binance.
John Reed Stark, former director of the SEC’s Internet Enforcement Office, criticized Gensler's approach, arguing that the agency's leadership has become too stubborn in its aggressive enforcement tactics. Stark noted the promotion of several senior enforcement officials who have been at the forefront of the agency's crackdown on cryptocurrency.
"SEC Chair Gary Gensler is clearly trying to run the SEC's Enforcement Division from the grave," Stark remarked. "Since Donald Trump was elected, Gensler has promoted five Senior Officers in the SEC's Enforcement Division at SEC Headquarters. Four of these SEC enforcement staff have matured as the SEC's cryptocurrency enforcement superstars."
Stark speculated that the new leadership, expected to pursue a pro-cryptocurrency agenda, could bring significant changes in how the agency handles cryptocurrency enforcement cases. However, he warned that the seasoned enforcement team may face challenges in adapting to new policies.
However, the upcoming pro-cryptocurrency agenda under the nomination of regulatory agency chair Paul Atkins could signal a change in how the agency handles such cases in the future. Under this new leadership, the SEC may alter its enforcement approach, particularly in cases involving companies like Ripple, Coinbase, and others embroiled in similar legal battles.
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