John Deaton, a supporter of cryptocurrencies, has come forward to help Coinbase in its legal battle against the U.S. Securities and Exchange Commission (SEC). A well-known lawyer in the cryptocurrency world, Deaton, is going to file an amicus brief in support of Coinbase’s move for an interlocutory appeal.
The move comes as worries about the lack of clarity in regulations surrounding digital assets grow. Deaton emphasized the urgent need for clear legal standards. Deaton stresses how important this case is for shaping the future of bitcoin regulation by pointing out the SEC’s inconsistent approach to regulation and how it hurts people in the industry.
SEC Inconsistencies Highlighted by Deaton
In his brief, Deaton refers to several important court cases, such as those involving Ripple, LBRY, and Telegram. He also talks about what the SEC has said in the past about regulating cryptocurrencies. He also talks about letters from different government agencies and lawmakers that are worried about what the SEC is doing in the crypto area.
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. John Deaton, pro-crypto lawyer and Massachusetts Senate candidate
Deaton’s main point is that the SEC is not consistent, especially when it comes to its changing views on whether crypto tokens should be considered stocks. Deaton is involved in cases related to cryptocurrencies, like his petition to challenge the SEC’s lawsuit against Ripple in 2021. This shows how much he wants clear regulations in the industry.
Coinbase recently filed an appeal in two courts in April, trying to challenge some parts of its ongoing legal fight with the SEC. This is happening at the same time as Deaton’s plan. For Coinbase, the main problem is whether or not digital asset transactions that don’t owe anything to the original issuer should be regulated by the SEC as investment contracts.
Deaton’s action shows that the SEC’s actions in the cryptocurrency market are being closely watched. It also has major effects on companies working in an area where regulations are getting more complicated.
