Pro-XRP lawyer John Deaton has criticised U.S. Rep Patrick McHenry, the chair of the Financial Service Committee (FSC). The criticism arose due to the lack of a subpoena to SEC Chair Gary Gensler despite his refusal to comply with Congressional oversight requests.
“I’ve been a supporter of @PatrickMcHenry. But he has yet to issue a subpoena to @GaryGensler, who refuses to comply with a single congressional oversight request,” Deaton said.
Deaton has a solid reputation representing numerous XRP holders in the SEC v. Ripple case. He argued that Congress should have issued several subpoenas to Gensler for impeding congressional oversight.
XRP Lawyer Reacts to Accusations about Gensler
The attorney responded to a tweet by New York Post columnist Brian Costello. In a tweet yesterday, Costello accused the FSC chair of letting Gensler shield China in the US Capital Markets.
According to Costello, the move supports China’s economic growth and fuels the country’s military operations. He pointed to McHenry as the key figure to expose the Biden administration’s alleged protection of China through the SEC.
“Will you act in the interest of the American people and the men and women who protect this country?” Costello asked.
Congress Threatens to Subpoena Gensler
Last month, House Republicans warned of subpoenaing the SEC to obtain information on its regulatory efforts in environmental, social, and governance matters. In a letter, James Comer, Chair of the House Oversight and Accountability Committee, accused Gensler of impeding congressional oversight.
Comer emphasised the potential use of compulsory processes, including subpoenas. He said this in case Gensler fails to cooperate with the Committee’s oversight. Similarly, McHenry criticised Gensler for not complying with congressional oversight requests in September. This includes the SEC chair’s yet-to-be-fulfilled response to the FSC’s inquiry into his interactions with former FTX CEO Sam Bankman-Fried.
“As I said, our patience is wearing thin. The SEC is not above the law, nor is it unique. Other financial regulators have routinely complied with congressional oversight,” McHenry said.
The FSC chair said he might issue a subpoena if Gensler fails to recognise the SEC’s responsiveness to Congress’ oversight rules. Nevertheless, McHenry still needs to issue a subpoena to Gensler despite the ongoing resistance of the SEC chair to comply with congressional oversight requests.