A federal judge in the US criticized the Securities and Exchange Commission (SEC) for making “false and misleading statements” in the case involving crypto company Debt Box. The judge’s criticism stemmed from concerns over the freezing of millions of dollars in assets related to the crypto company. Additionally, the court requested an explanation from the SEC and raised the issue of sanctions for damaging the trust the institution should create.
John Deaton, an attorney for XRP, stated on social media that he was not surprised by the judge’s assessment of the sanctions and accused SEC attorneys Jorge Tenreiro and GurbirGrewalNJ of knowingly misleading the court.
John E. Deaton specifically made an important plea to Republican members of the House Financial Services Committee and Chairman Patrick McHenry. The plea emphasized the need for the Financial Services Committee to fulfill its oversight duty regarding the SEC and Chairman Gary Gensler and issue a congressional directive.
According to Deaton, Gary Gensler and the SEC are failing to comply with the law and pose a significant threat to the crypto industry. Therefore, he called on Chairman Patrick McHenry and the Financial Services Committee to take decisive steps.
Attorney Bill Morgan also expressed surprise at the hesitation of the Financial Services Committee to issue a congressional directive, indicating potential political reasons behind this stance.