Pro-XRP lawyer and crypto advocate John Deaton has filed an amicus brief supporting Coinbase’s motion to certify an interlocutory appeal in the exchange’s ongoing case with the US Securities and Exchange Commission (SEC). In this petition submitted to the US District Court for the Southern District of New York, Deaton also heavily criticized the SEC’s regulatory approach while emphasizing the need for legal clarity in the crypto space.
John Deaton Stands As Amicus Curiae For Coinbase Customers
On April 12, Coinbase submitted a motion seeking an interlocutory appeal in its legal battle with the SEC over charges of violations of US securities law. The largest American exchange approached the court seeking clarification on whether an investment contract can be established solely through transactions that involve no post-sale obligations.
Coinbase has deemed this issue to be a “controlling question of law” following the disparity in opinions between the exchange and the SEC. Furthermore, the defendants also believe the legal interpretation of an investment contract could have a significant impact on the outcome of their case with the SEC.
John Deaton, who is a prominent crypto supporter, has now submitted an amicus brief backing Coinbase’s request for this interlocutory appeal. Deaton, who is also running for the US Senate House against popular crypto critic Sen. Elizabeth Warren, has stated his latest petition represents the interest of 4,701 Coinbase customers.
The popular pro-XRP lawyer believes that customers/investors of Coinbase should be able to express their voice in this court case as they are likely to be an affected party of any eventual ruling.
John Deaton said:
It is extremely important for end users of the technology to be represented and not allow a biased and politically motivated agency speak for them. But that doesn’t mean they want Coinbase to speak for them either.The SEC has unlimited resources, paid for by the taxpayer, and Coinbase is a multibillion dollar company with the best lawyers money can buy. The consumers deserve an advocate and a voice as well.
SEC Regulatory Approach Is Inconsistent, Deaton Says
In his amicus brief submitted in SEC v. Coinbase, John Deaton has also laid into the Commission’s enforcement actions in the crypto space highlighting a concerning level of inconsistency. In particular, he heavily criticizes the argument of only tokens with an ecosystem being classified as a security.
He said:
Bitcoin is certainly distinguishable from other cryptocurrencies but claiming it’s not a security unlike other tokens because it doesn’t have an ecosystem, is just plain dumb
The US Senatorial candidate also reiterated the need for clear regulations for the US crypto space, stating the current hostile and inconsistent approach by the SEC is harmful 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
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