John Deaton, a well-known XRP supporter and candidate for the US Senate in Massachusetts, has strongly criticized the US Securities and Exchange Commission (SEC) and its chairman, Gary Gensler.

Deaton alleges that the SEC and Gensler have caused substantial harm to small cryptocurrency investors, especially those who have invested in XRP. This criticism highlights the increasing tension between the crypto community and US regulatory bodies.

Deaton's accusations extend beyond general complaints. He asserts with "100% conviction" that Gensler and the SEC have done more damage to small investors than any other entity in recent years. One of Deaton's most significant claims involves Gensler's undisclosed meetings with Sam Bankman-Fried, the former CEO of the collapsed crypto exchange FTX, whom Deaton calls "the Bernie Madoff of crypto."

This allegation is particularly striking given FTX's downfall, which has caused significant financial losses for its users. Deaton's criticisms are part of a broader narrative that depicts Gensler and the SEC as disconnected from the realities of the crypto market and excessively harsh in their regulatory methods.

The ongoing legal battle between the SEC and Ripple Labs, the company behind XRP, has been a major focus in the crypto world since it started in December 2020. The SEC claims that Ripple's sales of XRP are unregistered securities transactions, a charge that Ripple denies.

In July 2023, federal judge Analisa Torres ruled that XRP sales on secondary markets are not securities sales, a partial victory for Ripple that was welcomed by the XRP community. Ripple CEO Brad Garlinghouse recently suggested that a final ruling could come by September, expressing hope for a favorable outcome for Ripple.

However, the legal uncertainties continue to loom over XRP and its investors. The case's outcome could influence the regulation of other cryptocurrencies in the US.

Beyond the Ripple case, the SEC has initiated a broad crackdown on cryptocurrency platforms and altcoins, asserting that most altcoins are unregistered securities, which imposes significant regulatory and compliance requirements.

Gensler justifies this strict approach by pointing to widespread noncompliance in the crypto industry and argues that the SEC's actions are necessary to protect investors and uphold market integrity. Critics like Deaton, however, contend that this approach is overly aggressive and unfairly impacts small investors, who often bear the brunt of regulatory actions.