John Deaton, challenger to Elizabeth Warren, to Submit Brief Supporting Coinbase’s Appeal in SEC Case Today: Fox

John Deaton, the attorney specializing in cryptocurrency and Massachusetts senate candidate contesting against incumbent Elizabeth Warren for her senate position, is preparing to submit an amicus curiae brief in favor of Coinbase’s interlocutory appeal against the United States Securities and Exchange Commission (SEC), as reported by Fox Business journalist Eleanor Terrett on Friday.

John Deaton Supports Coinbase in Its SEC Appeal

As per Terrett’s post on X, Deaton plans to file a brief backing Coinbase’s appeal later in the afternoon on April 26.

SCOOP: Massachusetts Senate candidate @DeatonforSenate/@JohnEDeaton1 is donning his #crypto law hat once again and will submit an amicus brief in support of @Coinbase’s motion for interlocutory appeal later today.

In the brief, Deaton emphasizes the pressing need for legal clarity…

— Eleanor Terrett (@EleanorTerrett) April 26, 2024

The cryptocurrency exchange has been embroiled in a contentious legal dispute with the SEC since the regulator filed a lawsuit against Coinbase in June 2023, alleging that it was operating as an unregistered crypto trading platform in violation of federal securities law.

Coinbase has sought to counter the SEC’s allegations, most recently by submitting an interlocutory appeal to the United States District Court in the Southern District of New York, aiming to obtain regulatory clarity regarding the classification of digital assets as securities.

While the specific contents of Deaton’s brief remain undisclosed, Terrett indicates that the senate candidate criticizes the SEC’s inconsistent position on whether digital assets qualify as securities and the commission’s “ecosystem is the security argument.”

“Bitcoin is certainly distinguishable from other cryptocurrencies, but asserting that it is not a security unlike other tokens due to the absence of an ecosystem is simply misguided,” Deaton asserts.

Elizabeth Warren, SEC Encounter Regulatory Scrutiny

The announcement of Deaton’s amicus curiae brief comes on the heels of a recent post on X by the challenger to Elizabeth Warren, condemning the U.S. government’s regulation-by-enforcement strategy concerning cryptocurrencies.

On Friday, @coinbase submitted a request for authorization to file an interlocutory appeal to the 2nd Circuit Court of Appeals. Due to Congress’s ineptitude and @GaryGensler’s bad faith regulatory approach driven by a political agenda, Coinbase is seeking to attain regulatory clarity… https://t.co/Udv2swSdjz

— John E Deaton (@JohnEDeaton1) April 15, 2024

“Due to Congress’s ineptitude and @GaryGensler’s bad faith regulatory approach driven by a political agenda, Coinbase is aiming to achieve regulatory clarity through the judicial system,” Deaton stated.

The SEC has frequently faced criticism for its aggressive regulatory measures regarding cryptocurrency. Software development company Consensys initiated a lawsuit against the regulator on Thursday, alleging attempts to classify Ethereum as a security.

In contrast, Warren has consistently pushed for rigorous digital asset regulation, including the enactment of the Digital Asset Anti-Money Laundering Act (DAAMLA). This legislation would significantly broaden know-your-customer (KYC) and anti-money laundering (AML) regulations to encompass several key participants in the crypto sector, such as miners, validators, and others.

“Identify your villain, and crypto is the means by which they can transfer funds,” Warren remarked during a recent senate committee hearing earlier this month.

Deaton’s recent legal support for Coinbase indicates escalating tension regarding the U.S. government’s approach to the digital asset ecosystem. However, it remains uncertain what impact, if any, the ongoing legal challenges posed by the SEC will have on its regulatory posture toward digital assets.

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