John Deaton, a prominent cryptocurrency attorney, criticized the U.S. Securities and Exchange Commission’s (SEC) approach to crypto regulation, calling it confusing and inconsistent. Deaton, now a Republican candidate opposing Massachusetts Senator Elizabeth Warren, recently filed as amicus counsel in the SEC’s Second Circuit appeal against Ripple. This filing, reported by FOX Business journalist Eleanor Terrett, reflects Deaton’s commitment to supporting XRP holders and clarifying regulations in the crypto sector.
Deaton, who represents 75,000 XRP token holders, including 627 residents of Massachusetts, said he would continue to fight for clarity in the digital asset sector, regardless of his campaign’s outcome. His participation in an appeal comes after the decision made by Judge Analisa Torres in the 2023 ruling, which declared that XRP secondary sales do not constitute security, thereby making its sale via platforms like Coinbase legal. Moreover, Ripple co-founder Chris Larsen has made XRP donations to Vice President Kamala Harris’s campaign, making it evident that XRP facilitates transfers and donations.
Also Read: Coinbase CEO Urges Support for John Deaton in Massachusetts Senate Race
SEC’s Conflicting Stance on Coinbase Raises Industry Concerns
Deaton also highlighted the SEC’s conflicting stance on Coinbase, noting that the regulator had approved the platform’s public listing years ago, only to file a lawsuit against it later. Contrary to SEC Chair Gary Gensler indicating that digital asset securities cannot be traded unless platforms list them on their trading platforms, the agency now claims that Coinbase’s business model is unlawful because it enables token transfers, including XRP, to third parties. Such an approach, Deaton continues, highlights the confusion that hampers crypto businesses operating within the United States.
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Senator Warren, in response, reportedly mocked Deaton’s support for XRP holders, particularly the Massachusetts residents he represents. Nevertheless, Deaton has vowed to continue advocating for crypto holders, criticizing Warren for her lack of attention to their needs. Deaton has stated that his commitment to protecting investors’ interests will persist as a U.S. Senator or a private citizen, especially in light of the SEC’s appeal against Judge Torres’ ruling on XRP.
Conclusion
With Deaton’s amicus filing, the Ripple case takes another significant turn, highlighting the call for clear regulations in the U.S. digital asset sector. The case’s outcome could have wide-reaching implications, setting the stage for future regulatory decisions on digital currencies.
Also Read: John Deaton Launches Campaign Against Elizabeth Warren, Championing Pro-Crypto Policies
Maxwell Mutuma
Maxwell is a crypto-economic analyst and Blockchain enthusiast, passionate about helping people understand the potential of decentralized technology. He writes extensively on topics such as blockchain, cryptocurrency, tokens, and more for top publications such as Coingape, Coin Edition, and The Coin Republic. His goal is to spread knowledge about this revolutionary technology and its implications for economic freedom and social good.