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Senate Hopeful and Crypto Lawyer John Deaton Supports Coinbase in SEC Battle

John Deaton, a crypto lawyer currently vying for a Senate seat against Elizabeth Warren, has filed a brief supporting Coinbase in its appeal against the United States Securities and Exchange Commission (SEC).

In a filing dated April 26 in U.S. District Court for the Southern District of New York, John Deaton lodged an amicus brief backing a motion for interlocutory appeal on behalf of 4,701 Coinbase customers.

The document, filed pro bono, aims to advocate for the interests of these customers rather than the exchange itself.

Deaton cited past SEC enforcement actions as evidence that the regulator “does not speak on behalf of digital asset users and investors and intends to offer no regulatory guidance beyond citing the Howey case.”

He referenced the SEC’s civil cases against Debt Box, suggesting the SEC prioritized harming a crypto company over truth and justice, leading to a judge sanctioning the commission in that instance.

While an April 26 X post directly linked Deaton’s actions to his Senate campaign, he initially positioned himself as a legal representative for Coinbase customers in June 2023, predating his campaign announcement, following the SEC’s lawsuit.

An April 19 filing indicated the success of his latest motion to file an amicus brief.

Deaton emphasized the importance of representing end users of the technology, asserting that a biased and politically motivated agency shouldn’t speak for them, nor should Coinbase.

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According to Coinbase Chief Legal Officer Paul Grewal, the interlocutory appeal questions whether the term “investment contract” necessitates contractual obligations post-sale, a key legal issue in the SEC’s case against the crypto exchange.

The potential impact of Deaton’s legal actions on his Senate campaign remains uncertain, given the upcoming election in less than six months.

Both candidates for the Massachusetts Senate seat hold contrasting views on digital assets, with Senator Warren recently urging authorities to combat the use of crypto in transactions involving child sexual abuse material, as evidenced by an April 25 letter she signed.

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Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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