Pro-XRP Lawyer Advises Next SEC Regime to Take Crypto Fraud Seriously

Over the years, the cryptocurrency industry has seen significant losses due to fraud and scams. According to recent research, in the first half of 2024, crypto fraud and scams cost victims over $679 million. Concerns regarding the necessity of consumer protection through regulatory agencies have been raised by these questionable activities.

Recently, pro-XRP attorney John Deaton was featured on a podcast to discuss these escalating concerns, offering advice to the future SEC chairman and urging the organization to take consumer protection seriously.

John Deaton Urges SEC to Tackle Pump-and-Dump Schemes

A podcast presented by XRPP Productions, a well-known account on crypto X, drew nearly 3,000 listeners worldwide. Deaton talked about his election campaign, crypto in the US, and the SEC’s prospects under a new chairman on the podcast.

Recall that following his concluding remarks at a regulatory conference last week, rumors began to circulate about Gary Gensler, the current SEC chairman, perhaps stepping down. In his address, he described his period at the SEC as an “honor,” and praised his colleagues for their work over the years.

Although this is also a common way to end a speech, the cryptocurrency community has conjectured that it could be an indication of an impending resignation.

Given this, John Deaton counseled the incoming chairman that strict consumer protection regulations ought to be given careful consideration to lower the rising incidence of fraud and scams in the cryptocurrency industry. He stated,

“I really hope whoever takes over at the SEC really focuses on fraud, pump-and-dump things, and things like that, where consumers really need to be protected.”

In a pump-and-dump cryptocurrency scam, the project developers or scammers inflate the project’s potential in order to attract investors and influence the price.

These gullible investors purchase the low-value currency, which causes its value to rise sharply. The scammers then sell off their holdings at the top, bringing the coin’s value to zero.

Deaton has warned the incoming SEC administration to take this kind of scam seriously because it is a rising concern in the crypto industry, particularly in memecoins.

Deaton Losses Political Race

In the just-finished US election cycle, John Deaton ran as a Republican for a Senate seat in Massachusetts. During the primaries, he overcame two opponents, Robert Antonellis and Ian Cain, to take the top slot.

Deaton called for simpler and more balanced cryptocurrency laws during his campaign, a sentiment shared by many industry professionals. He also advocated for regulations that encourage innovation and protect consumers.

However, his political ambitions were dashed when he lost the contest to Senator Elizabeth Warren, who was re-elected for a third time. Senator Warren argued during her campaign that a Deaton victory would result in a Republican takeover of the United States Senate and the implementation of anti-Massachusetts policies.

Conclusion

The cryptocurrency industry continues to grapple with significant losses from scams and fraud, exceeding $679 million in the first half of 2024, highlighting the urgent need for robust consumer protection. Pro-XRP attorney John Deaton has called on the SEC, especially under potential new leadership, to focus on combating pump-and-dump schemes and other fraudulent activities that harm investors.

Despite losing his Senate bid to Elizabeth Warren, Deaton’s campaign emphasized the importance of balanced regulations that foster innovation while safeguarding consumers, echoing a widespread sentiment within the crypto community.