Pro-XRP attorney and crypto advocate John Deaton has filed an amicus brief supporting Coinbase’s motion to certify an interlocutory appeal in the exchange’s ongoing filing with the Securities and Exchange Commission (SEC ) the United States. In this petition submitted In the U.S. District Court for the Southern District of New York, Deaton also strongly criticized the SEC’s regulatory approach while emphasizing the need for legal clarity in the crypto space.
John Deaton Acts as Amicus Curiae for Coinbase Customers
April 12, Coinbase submitted a motion seeking an interlocutory appeal in its legal battle with the SEC over accusations of violations of U.S. securities law. The largest U.S. exchange contacted the court seeking clarification on whether an investment contract can be established solely through transactions that do not involve any after-sales obligations.
Coinbase deemed this issue a “determining question of law” following the disparity of opinions between the exchange and the SEC. Additionally, Defendants also believe that the legal interpretation of an investment contract could have a significant impact on the outcome of their SEC lawsuit.
John Deaton, who is a prominent crypto proponent, has now submitted an amicus brief supporting Coinbase’s request for this interlocutory appeal. Deaton, who is also running for U.S. Senate against Sen. Elizabeth Warren, a popular crypto critic, said her latest petition represented the interest of 4,701 Coinbase customers.
The popular pro-XRP lawyer believes that Coinbase customers/investors should be able to express their voice in this legal case, as they are likely to be an affected party by any possible decision.
John Deaton said:
It is extremely important that the end users of the technology are represented and not allow a biased, politically motivated agency to speak on their behalf. But that also doesn’t mean they want Coinbase to speak for them.The SEC has unlimited resources, paid for by the taxpayer, and Coinbase is a multi-billion dollar company with the best lawyers money can buy. Consumers also deserve an advocate and a voice.
SEC Regulatory Approach Is Inconsistent, Deaton Says
In his amicus brief submitted in the SEC v. Coinbase case, John Deaton also laid out the Commission’s enforcement actions in the crypto space, highlighting a concerning level of inconsistency. In particular, he strongly criticizes the argument that only tokens with an ecosystem are classified as security.
He said:
Bitcoin certainly stands out from other cryptocurrencies, but claiming that it isn’t a security like other tokens because it doesn’t have an ecosystem is just plain stupid.
The US Senate candidate also reiterated the need for clear regulation for the US crypto space, saying the SEC’s current hostile and inconsistent approach is detrimental to the growth of the nascent industry.
Crypto total market cap valued at $2.265 trillion on the daily chart | Source: TOTAL chart on Tradingview.com
Featured image from The Hill, chart from Tradingview
