John Deaton, a prominent lawyer and pro-XRP advocate, has shared his thoughts on the regulatory crackdown against the cryptocurrency industry and the recent Securities and Exchange Commission (SEC) complaint against Binance. Reports have suggested that the United States Department of Justice (DOJ) may file criminal charges against Binance and its CEO, Changpeng Zhao (CZ), along with the civil charges already filed by the SEC. Deaton believes that the DOJ might pursue criminal charges due to the Commodity Futures Trading Commission CFTC’s recent injunction against the exchange. He also suggests that SEC Chairman Gary Gensler is front-running the DOJ’s potential criminal charges to claim “litigation dibs.”

Deaton further argues that the regulatory crackdown will be a significant issue in the 2024 presidential election with the current administration’s stance on cryptocurrency potentially creating a war against innovation. Binance.US has pushed back against the SEC’s allegations, stating that they are baseless and represent legal maneuvering, not genuine concern for customer safety. The SEC’s true interest in bringing numerous cases against cryptocurrency companies is political grandstanding and land grabbing, not the protection of consumers or business thriving in the US.

Despite the SEC’s allegations, Binance.US has assured its customers that their assets remain safe and secure, and deposits and withdrawals will continue as usual. The exchange intends to defend itself in court against the allegations and remains confident that their operations comply with all applicable laws and regulations. If criminal charges are filed against Binance and CZ, it would represent a significant escalation in regulatory crackdown against the cryptocurrency industry and the world’s largest exchange.

Featured image from Unsplash, chart from TradingView.com