“There’s no other way to describe this other than putting Tenreiro in his place and saying, if you don’t like it, leave,” Deaton wrote.
By Chimamanda U. Martha
Edited by Julia Sakovich
Updated
3 mins read
John Deaton, a pro-crypto lawyer and former US Senate candidate, has openly celebrated the recent demotion of Jorge Tenreiro, one of the 50 enforcement attorneys transferred to another department within the Securities and Exchange Commission (SEC).
Deaton, who lost to Senator Elizabeth Warren in the 2024 election, has been a vocal critic of the SEC’s aggressive enforcement actions against the crypto industry. He believes Tenreiro’s reassignment to the SEC’s Microdata Refinement department is a fitting consequence of his role in pursuing legal action against crypto firms, particularly in cases like Ripple and DEBT Box.
Deaton accused Tenreiro of using questionable legal tactics to secure victories for the SEC, alleging that he prioritized winning over fairness. He pointed to the DEBT Box lawsuit as an example, where a federal judge sanctioned SEC attorneys for misleading the court to obtain a temporary restraining order (TRO) against the company.
Similarly, in the ongoing SEC v. Ripple case, Judge Sarah Netburn criticized SEC lawyers for lacking a “faithful allegiance to the law”. While the judge did not name Tenreiro specifically, Deaton claims she was referring to him as he was leading the commission’s legal team at the time.
In a detailed post on X (formerly Twitter) on Friday, Deaton suggested that Tenreiro’s reassignment is a signal that his services are no longer valued under the current SEC administration. He argued that if Tenreiro is unhappy with his new role, he should consider leaving the agency entirely.
“There’s no other way to describe this other than putting Tenreiro in his place and saying, if you don’t like it, leave. And make no mistake, Tenreiro EARNED this demotion and humiliation. I’m not saying this because he prosecuted crypto companies or because he hates crypto, he said.
The SEC’s recent staff reshuffling comes amid a broader transition following the end of the Biden administration. Last month, former SEC Chairman Gary Gensler stepped down and returned to Harvard as a professor, making way for new leadership.
Under the current administration, the agency is pivoting toward a more transparent regulatory approach, reducing its reliance on aggressive enforcement. This shift includes downsizing the crypto enforcement unit and launching a dedicated crypto task force, led by pro-crypto SEC Commissioner Hester Peirce, to provide clearer regulatory guidance.
Currently, the SEC is headed by acting Chairman Mark T. Uyeda, who was first sworn in as Commissioner on June 30, 2022. Uyeda, confirmed for a five-year term expiring in 2028, is expected to oversee the agency’s evolving approach to crypto regulation until Paul Atkins takes his seat at the table.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
