Pro-XRP attorney John E. Deaton has expressed deep concerns about the significant influence of large financial contributions in U.S. politics, particularly the cryptocurrency industry. In a recent post on social media platform X, Deaton called for removing “big money” from political campaigns, highlighting how such donations could undermine the democratic process.
His comments were triggered by Elon Musk’s criticism of the Presidential Medal of Freedom being awarded to billionaire George Soros. Deaton drew attention to the controversial role of substantial crypto donations in shaping political influence, referencing high-profile examples like Sam Bankman-Fried (SBF) and other politically active figures.
Crypto donations and the case of Sam Bank Man-fried
Deaton pointed to the case of Sam Bankman-Fried, the former CEO of FTX, as a cautionary example of the dangers of monetary influence in politics. Bankman-Fried, recently convicted of fraud, reportedly donated $70 million during the 2022 midterm elections, with most of these contributions going to Democratic candidates.
During the FTX fraud trial, it was revealed that Bankman-Fried gave $10 million to President Joe Biden’s administration to gain regulatory access. Deaton argued that these donations allowed Bankman-Fried to meet with key regulators such as SEC Chair Gary Gensler and members of the CFTC on multiple occasions.
He also noted how SBF’s family allegedly played a role in amplifying his influence, with his father, Joe Bankman, contributing to tax policy and his mother, Barbara Fried, running a SuperPAC supporting liberal Democrats. Deaton criticized the lack of accountability, citing reports of stolen customer funds being used to purchase Bahamian luxury properties for SBF’s family while they faced no legal charges.
Growing Calls for Oversight on Political Spending
Some Democratic lawmakers are now pushing for audits to scrutinize the Biden administration’s financial expenditures. Senators Bernie Sanders and John Fetterman have endorsed some of Elon Musk’s proposed federal spending cuts. Musk’s plan includes reducing $2 trillion annually by targeting waste and inefficiency in government programs.
Representative Ro Khanna supported the proposed reductions in Pentagon spending, highlighting wasteful defense contracts that have burdened taxpayers. Sanders echoed similar concerns, pointing out that the Pentagon, with its $886 billion budget, has repeatedly failed audits while losing track of billions of dollars.
The Crypto Industry’s Role in Reforming Political Influence
Deaton warned that political campaigns have increasingly become vehicles for moving large sums of money, creating opportunities for corruption. He emphasized the irony of calls for transparency in defense spending while many Democrats support expanding IRS audits for average citizens. The attorney urged the crypto community to reconsider its role in funding political campaigns, stressing the importance of protecting the integrity of democratic processes.