Crypto Law Founder Slams SEC Chairman, Exposes Gensler's Past Decisions About Bitcoin

Recent statements of the U.S. Securities and Exchange Commission (SEC) chairman Gary Gensler drew flak from the crypto community, particularly from John Deaton, a known XRP lawyer and founder of Crypto Law, who exposed Gensler's previous decisions and the history of his support for Bitcoin.

In a recent interview with the New York Mag, Gensler claimed that "everything other than Bitcoin," is under the agency's scope, and other crypto projects "are securities because there's a group in the middle and the public is anticipating profits based on that group."

Deaton is a known critic of the SEC and Gensler's recent statement noting that all crypto assets, except Bitcoin, are securities and should fall under the jurisdiction of the financial regulator did not change the lawyer's opinion about him.

Deaton called Gensler's comments "pathetic" and said that the SEC chair was also the one who prevented a spot BTC ETF but allowed professional traders to trade short ETF and futures.

"Watching #Bitcoin Maxis celebrate @GaryGensler's comments that everything except BTC is security is pathetic. This is the same guy who's prevented a spot #Bitcoin ETF while allowing professional traders (investment banks) to trade both a futures and short ETF," Deaton's tweet read.

Deaton also launched an assertion against Gensler and his link to several crypto businesses and personalities, noting that it could lead to the SEC chairman's downfall.

The XRP lawyer suggested Gensler's potential connection with the escape of the disgraced FTX founder Sam Bankman-Fried and the collapse of his crypto empire. Deaton underlined that if this alleged connection is properly investigated, it could spell the end of Gensler's scrutiny of the cryptocurrency sector.

Deaton made this comment while reacting to the tweet of a Twitter user who goes by the handle @bpcostello who said, "the Congress has also enabled the CCP/PLA. The failure to hold Gary Gensler at SEC accountable for investigating capital market claims vs. Sequoia's China principal (global steward), Neil Shen, has major consequences for our republic."

Deaton retweeted the statement and commented that it is a "very important issue and I believe this could be the end of @GaryGensler if it is properly investigated. Sequoia was also a top investor in FTX and SBF had 200 million in Sequoia's funds. Ask yourself, why do these folks have so much access to Gensler?"

The U.S. Commodity Futures Trading Commission (CFTC) classified Bitcoin, the world's largest crypto asset by market capitalization, as a commodity under the Commodity Exchange Act (CE).

The SEC, under Gensler's leadership, had, in the past mentioned bringing Bitcoin under the scope of the CFTC while it is overseeing regulation on other crypto assets.