- John E Deaton criticized the US SEC’s gross abuse of discretion standards.
- He exemplified the negligence of the case of Bernie Madoff, who had been alleged of a Ponzi scheme.
- In subsequent tweets, he added that a systematic investigation is needed to probe into the details of the commission.
John E Deaton, the blockchain enthusiast, lawyer, and CryptoLaw founder, tweeted recently, criticizing the US Securities and Exchange Commission’s (SEC) gross abuse of the discretion standard, based mainly on the commission’s allegation against the crypto exchange, Ripple Labs, for illegally selling over $1.3 billion in XRP.
He commented that the “subpoena power” to get the personal emails of the former SEC officials would help one to know more about the commission’s Executive Branch.
Earlier today, Deaton tweeted that the allegations that the SEC asserts are within the “discretionary functions of the Executive Branch.”
Previously, in January 2021, Deaton filed a Writ of Mandamus against the SEC to seek “judicial remedy in the form of a Court order to any gov’t employee to do some specific act which he/she is obliged under law to do.”
In a recent tweet, he mentioned that his claims against the SEC would have been dismissed by the judge “based on the separation of power doctrine.”
Notably, the attorney illustrated the content with the example of Bernie Madoff, who had been alleged to have run a massive Ponzi scheme in December 2008. Deaton said that the SEC had been negligent in the case:
A good example to give is Bernie Madoff. Investors brought class actions against the SEC for being grossly negligent in not prosecuting Madoff sooner, considering a whistleblower made it clear that Madoff was operating a Ponzi scheme years before Madoff confessed.
In addition, he said that the cases v/s SEC were dismissed because “the decision to file a case or not file a case is within the discretion of the SEC-part of the executive branch.”
Furthermore, Deaton talked in detail about the necessity of probing into the decision to file a case and the reasons behind the filing, along with the time and the way in which the procedures were carried out.