John Deaton submits amicus brief in backing of Coinbase’s appeal against SEC

A Senate candidate, who is also a crypto lawyer, has submitted a legal document in support of Coinbase’s appeal against the SEC. The lawyer, John Deaton, filed an amicus brief on behalf of 4,701 Coinbase customers, stating that he is representing their interests rather than the exchange itself. Deaton highlighted previous SEC enforcement actions as evidence that the regulator does not represent digital asset users and investors and fails to provide adequate regulatory guidance. He mentioned the SEC’s civil cases against Debt Box as an example of the commission being more focused on harming a crypto company than seeking truth and justice. Deaton’s actions are not directly connected to his Senate campaign, as he initially offered his legal representation to Coinbase customers before announcing his campaign. Coinbase’s Chief Legal Officer, Paul Grewal, stated that the appeal questions whether the term “investment contract” requires contractual obligations after a sale, which is a key issue in the SEC’s case against the exchange. The impact of Deaton’s legal work on his Senate campaign remains uncertain, especially considering the candidates’ differing views on digital assets. Senator Elizabeth Warren, Deaton’s opponent, has called for stricter regulations on crypto, particularly in relation to child sexual abuse material.