Criticism Mounts Against SEC Chair Gensler Over Alleged Ties to Sam Bankman-Fried

John Deaton, a prominent lawyer known for his advocacy in the XRP case, has raised concerns over the apparent closeness between SEC Chair Gary Gensler and FTX founder Sam Bankman-Fried (SBF).

His remarks were made following the SEC’s announcement of a record-breaking year for financial penalties in its enforcement actions for fiscal year 2024.

In a recent post on X, Deaton took aim at Gensler’s private meetings with Bankman-Fried, contrasting them with the SEC’s refusal to grant similar meetings to major U.S. crypto figures, including Coinbase CEO Brian Armstrong and Kraken founder Jesse Powell.

Deaton suggested that such actions reflected a troubling bias within the SEC and accused the agency of showing favoritism toward the FTX founder.

Further fueling his critique, Deaton pointed out that Bankman-Fried’s substantial political donations, totaling $10 million, might have played a role in his access to regulatory discussions.

The lawyer implied that these financial contributions could have influenced the SEC’s favorable treatment of FTX, particularly in contrast to the more stringent stance taken against U.S.-based crypto firms.

Deaton’s comments come at a time when Gensler has announced that he will step down from his role as SEC Chair on January 20, 2025, coinciding with the anticipated inauguration of Donald Trump as the 47th president of the United States.