Following SEC lawyer Jorge Tenreiro’s transfer to the commission’s IT department, attorney John Deaton has criticized him, stating that he deserves the demotion and humiliation.
Amid the SEC’s crypto policy shift, the commission reassigned over 50 enforcement lawyers to different departments. Tenreiro was among the senior lawyers moved to the SEC’s Microdata Refinement department. Notably, he led the commission’s litigation against crypto businesses under the past administration.
Deaton Says Tenreiro Deserves the Demotion
His transfer elicited reactions among crypto community members. Deaton, a pro-XRP lawyer and former U.S. Senate Candidate, asserted that he deserves the demotion and humiliation.
According to Deaton, the demotion is the SEC’s polite way of telling Tenreiro to leave the commission if he disagrees with the transfer. The pro-XRP lawyer clarified that his criticism stems from Tenreiro’s conduct in SEC’s high-profile cases.
Attorney Deaton emphasized that lawyers like Tenreiro prioritize winning at all costs, as observed in the commission’s lawsuits against Ripple and DEBT Box.
“He would say anything, no matter how untrue, just to win an argument or advance his litigation goals,” Deaton recounted.
Judges Criticize SEC Lawyers Led By Tenreiro
For context, a federal judge sanctioned the SEC lawyers in the DEBT Box case for using false claims to obtain a temporary restraining order (TRO) against the company.
Meanwhile, in the Ripple case, Judge Sarah Netburn admonished the SEC lawyers for lacking faithful allegiance to the law. She indicated that the lawyers would do anything to advance its litigation goals.
Notably, Judge Netburn did not directly mention any name during the criticism. However, Deaton claimed she was referring to Tenreiro, saying he was the commission’s lead attorney at the time.
“Lawyers like Tenreiro have a win-at-all-costs attitude, with no commitment to fairness, truth, or justice,” Deaton remarked.
Misuse of Government Power
Furthermore, attorney Deaton accused Tenreiro of misusing government power to intimidate litigants and entrepreneurs. Having been a federal prosecutor, Deaton emphasized that a lawyer representing the government should seek justice rather than pursue personal ambition.
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.… https://t.co/swNGHYBoFt
— John E Deaton (@JohnEDeaton1) February 7, 2025
Attorney Deaton has been a vocal critic of the SEC, opposing the commission’s enforcement actions against crypto businesses and advocating for regulatory clarity. Meanwhile, the SEC is now taking steps to provide much-needed clarity under the new leadership.
In particular, the SEC is undergoing a policy shift as it moves to reduce its enforcement-heavy approach. This effort includes downsizing the crypto enforcement unit and launching a crypto task force.
The unit, headed by pro-crypto SEC Commissioner Hester Peirce, is developing a transparent regulatory environment for the industry.
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