Crypto Lawyer John Deaton Files Amicus Brief in Coinbase's SEC Conflict Amid Senate Race
Summary:
John Deaton, a crypto lawyer and Senate candidate running against Elizabeth Warren, has filed a pro bono amicus brief for 4,701 Coinbase customers in relation to the ongoing case with the SEC. Deaton suggests that SEC's regulations are not in the best interest of digital asset users and offered his services as legal representative to the Coinbase users. In a related case, the SEC is accusing Bitcoin mining company Geosyn of $5.6 million fraud. Deaton's role in these cases and his stance on cryptocurrency may impact his Senate campaign, with opponents like Elizabeth Warren calling for stricter regulations on crypto-assets.
John Deaton, a prominent advocate for cryptocurrency and a Senate hopeful aiming to unseat Elizabeth Warren, has submitted a document supporting Coinbase in its ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC). In paperwork filed on April 26 at the U.S. District Court for the Southern District of New York, Deaton presented an amicus brief favoring an interlocutory appeal for 4,701 Coinbase customers. The brief was provided on a pro bono basis, indicating that Deaton's intention was to protect the rights of the exchange's customers, not the exchange itself.
In his argument, Deaton made use of historical SEC actions as proof that the regulatory body fails to represent the interests of digital asset users and investors and provides no regulatory guidance beyond referencing the Howey case. He also referenced the SEC's litigation against Debt Box, where he contends that the SEC's focus was more on damaging a crypto firm than upholding truth and justice—an allegation that led to the sanctioning of the commission in that case.
Even though a post on April 26 linked Deaton’s actions directly to his Senate campaign, he previously proposed his legal services to Coinbase customers in June 2023—prior to him announcing his campaign—following the initiation of the SEC lawsuit. A document filed on April 19 implies his latest motion to file an amicus brief was approved.
Emphasizing the need for technology users to be represented, Deaton said, “It is crucial not to let a prejudiced and politically driven entity represent them. However, this doesn't translate to them wanting Coinbase to speak for them."
In similar news, the SEC is suing Bitcoin mining company Geosyn, accusing its founders of $5.6 million fraud.
Coinbase’s Chief Legal Officer, Paul Grewal, said the interlocutory appeal to the court is about whether the term "investment contract" — a cornerstone for identifying a security under SEC guidelines — requires contractual responsibilities after a sale. The SEC’s ongoing case against the crypto exchange includes this legal issue.
How Deaton’s advocacy for cryptocurrency could impact his Senate run remains to be seen. Election Day is fast approaching, and the opposing candidates for Massachusetts’ Senate seat hold significantly divergent notions about digital assets. Notably, Senator Warren supported an April 25 letter requesting stricter regulation on the use of cryptocurrency for child sexual exploitation payments.
Meanwhile, a revealing analysis of Lazarus Group’s favored exploit in cryptocurrency hacking recently appeared in a magazine article.
Published At
4/26/2024 11:35:00 PM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.