Pro-XRP Lawyer John Deaton Criticizes SEC Conduct Amid Crypto Industry Backlash

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• Pro-XRP lawyer John Deaton accuses SEC attorneys of unethical conduct, citing court rulings and sanctions for fraud.
• Deaton highlights cases like LBRY and Kraken, claiming SEC tactics bankrupted projects despite legitimate token uses.

John E. Deaton, a lawyer representing XRP stakeholders, publicly accused the U.S. Securities and Exchange Commission (SEC) of systemic unethical behavior in a March 17 post on X. Deaton argued that recent court rulings and sanctions against SEC attorneys reveal a pattern of misconduct extending beyond isolated cases.

Deaton cited a federal appeals court’s decision deeming the SEC’s actions “arbitrary and capricious,” a legal standard he called “nearly impossible” to meet, suggesting the agency lacked justification.

Let’s get something straight:

These SEC enforcement lawyers EARNED the fallout. Let’s remember:

1) An appellate court called them arbitrary and capricious – a standard in the law difficult to meet. When a court says an agency was arbitrary and capricious it’s because no valid… https://t.co/yMIguehX2r

— John E Deaton (@JohnEDeaton1) March 17, 2025

He also referenced a separate ruling where a judge labeled SEC attorneys “hypocrites” who acted without “good faith” or “faithful allegiance to the law.” Deaton emphasized that some SEC lawyers were sanctioned for fraud on the court, implying intentional deception to secure victories.

He highlighted cases like LBRY, a token project he claims was “bankrupted” by SEC enforcement despite its token’s non-investment use, and Dragonchain, which survived only after political shifts. Kraken, too, faced similar pressures, Deaton asserted, arguing the SEC’s strategy targeted smaller projects to deter broader industry growth. “These lawyers can’t blame former Chair Gary Gensler,” he stated. “They own their actions.”

Deaton’s remarks respond to a Politico article detailing the crypto industry’s push to hold SEC staff accountable under new leadership. Acting SEC Chair Mark Uyeda has paused or dropped cases against Coinbase, Robinhood, and Gemini, signaling a policy shift. Industry figures like Ripple’s Stuart Alderoty and Gemini’s Winklevoss twins have demanded clearer regulations and accountability for past SEC conduct.

Politico reported that crypto firms are avoiding law offices employing ex-SEC attorneys involved in prior crypto investigations. One anonymous source claimed job offers were revoked due to such ties. William McLucas, a former SEC enforcement director, criticized targeting individual lawyers as “totally inappropriate,” urging the industry to focus on progress.

Despite calls for “accountability, not retribution,” some observers note a desire for public vindication amid lingering tensions. While the SEC remains a key regulator, industry leaders stress the need for constructive engagement to shape future policies.

As of today, XRP is trading at $2.2404, reflecting a 0.74% decline in the past 24 hours. Over the past week, XRP has gained 14.80%, but in the last month, it has dropped 15.97%. Despite short-term corrections, XRP remains 261.88% higher year-over-year, indicating strong long-term performance.

Technical Analysis & Predictions

• Short-term (1-2 weeks): XRP is showing a sell signal on daily charts, but a buy signal on weekly and monthly timeframes. This suggests a potential correction before another upward move. Support levels to watch are $2.10 and $2.00, while resistance remains at $2.50-$2.70.
• Mid-term (1-3 months): If bullish momentum returns, XRP could attempt another rally toward $3.00, particularly if market conditions remain favorable.
• Long-term (6-12 months): Given its historical volatility and past trends, XRP could challenge $3.50-$4.00, provided that institutional adoption and regulatory clarity continue to improve.

XRP remains highly volatile, with a 5.16% daily volatility rate, meaning traders should remain cautious and monitor key technical indicators for confirmation of trend reversals.