John E. Deaton did that hit the SEC for its aggressive actions against companies and individuals, using Elon Musk’s recent legal clash as an example. Deaton highlighted a report that SEC Chairman Gary Gensler had sent a settlement demand to Musk, threatening charges unless he complied within 48 hours. Musk’s lawyer, Alex Spiro, accused the SEC of intimidation and politically motivated actions.
Elon Musk has had a long-running feud with the SEC, starting in 2018 when the agency accused him of fraud over his “Funding Secured” in his X-post about taking Tesla private. Musk settled the case, paid a $20 million fine for both himself and Tesla, and resigned as Tesla’s chairman.
However, the settlement only fueled his resentment toward the SEC. Musk has repeatedly criticized SEC Chairman Gary Gensler and has continued his public attacks since Trump’s election. Musk now leads a non-governmental effort, the Department of Government Efficiency (DOGE), to study federal spending and regulations.
John Deaton made a joke about SEC actions
That said, Deaton argued that if the SEC treats the world’s richest man this way, smaller companies and entrepreneurs will face even tougher challenges. He was referring to the LBRY case, in which the SEC allegedly threatened to bankrupt the company and its founder, Jeremy Kauffman, before a lawsuit was filed.
Similarly, Ripple and its CEO Brad Garlinghouse reportedly spent more than $150 million defending what Deaton described as a “non-fraud case.” Most companies do not have such resources, making it virtually impossible to fight back against the SEC.
Deaton also pointed to the SEC’s actions against Dragonchain as another example of regulatory overreach. He expressed hope that Paul Atkins, a former SEC commissioner, could reform the agency if given the chance.
An X-user Nuclear Herb responded to John Deaton and shared another example of the SEC’s overreach in the SEC v Richard Heart Hearing, where the judge struggled to understand the SEC’s allegations of fraud. The message suggests that just because the SEC accuses someone of fraud does not mean actual fraud has occurred. According to the post, the SEC uses the term “fraud” to unfairly influence public opinion, even when the claims are unfounded.
These criticisms add to growing concerns about the SEC’s enforcement methods, especially in the crypto space, where companies often face costly and lengthy legal battles.
Credit : coinpedia.org
