John Deaton, the challenger of Massachusetts Elizabeth Warren, is making waves in the crypto industry, fighting against an SEC lawsuit to support Coinbase.
Massachusetts Senate candidate John Deaton turned the legal battle between the Crypto sector and the SEC lawsuit into a political struggle. Senate Warren’s challenger supports Coinbase, the biggest cryptocurrency exchange in the US, to fight the SEC on behalf of the crypto industry. Deaton filed an amicus brief in the ongoing legal battle.
The Battle Between Crypto Industry and The SEC Lawsuit
Massachusetts Senate candidate John Deaton, the crypto supporter, stirred the crypto market and the government regulators with his new move. He turned the legal battle between Coinbase and the SEC Lawsuit into a political struggle and stood by Coinbase’s side.
The challenger of Elizabeth Warren filed an amicus brief in the ongoing legal war between Coinbase and the government regulators. Deaton is all prepared to stand for 4,701 Coinbase users, developers, and crypto investors who want to be heard in court and filed a brief in the Southern District of New York.
In an interview with FOX Business, Deaton stated that the SEC is not thinking in favor of small investors and is operating solely.
“SEC Chairman Gary Gensler and his agency have shown that they are not interested in guarding small investors and operate only to serve their political masters,” said Deaton.
According to Deaton, the SEC and Coinbase hold unlimited resources to fight the legal battle, but Coinbase users and investors need an advocate and a strong voice. The crypto enthusiasts also criticized the agency’s inconsistent perspectives and lack of clarity on token regulations and categorization.
He filed for a Howey test to validate the categorization of the cryptocurrencies, including Bitcoin. Deaton argued that Bitcoin holds the largest and most established ecosystem and is not considered a security by the SEC.
On April 27, Coinbase’s Chief Legal Officer Paul Grewal took on X to thank John Deaton for supporting Coinbase and the entire crypto community.
Our disputes with the @SECGov are about much more than just @coinbase. They are about about an entire industry and the 52 million Americans that own crypto. Thank you to @JohnEDeaton1 (+4,701 Coinbase customers) and @BlockchainAssn for their amicus briefs in support of…
— paulgrewal.eth (@iampaulgrewal) April 26, 2024
SEC’s Allegations On Coinbase
The SEC alleged Coinbase for violating the securities laws and operating illegally unregistered broker-dealers. The crypto exchange offers users unregistered security and services, including investing and trading.
Coinbase, on the other side, appealed to halt legal proceedings for a fair decision and case resolution. The exchange also urged the application of the Howey Test to digital asset transactions to clarify the allegations.
The final hearing of the ongoing legal war will significantly impact the future of cryptocurrency, mainly in terms of crypto regulations.
