Key Takeaways
- He mentioned that his drive to aid Coinbase customers came from a desire to safeguard everyday individuals looking to build a bit of wealth in their lives
- Deaton expressed optimism about the likelihood of Coinbase’s motion being granted.
Crypto advocate and lawyer John Deaton has extended support to Coinbase customers amidst the exchange’s legal tussle with the U.S. Securities and Exchange Commission (SEC). Deaton, known for championing cryptocurrencies, has filed a request to serve as amici counsel for 4,701 Coinbase customers involved in the ongoing lawsuit.
In an exclusive interview with Fox, Deaton emphasized the necessity of regulatory clarity in the crypto space, urging the SEC to provide guidance. He stated, “It’s really about a clarity of law in the SEC not doing its job in providing guidance in the digital asset space.”
He mentioned that his drive to aid Coinbase customers came desire to safeguard everyday individuals looking to build a bit of wealth in their lives
Deaton further commended Coinbase’s strategic alignment with the SEC’s approach in the Ripple case to seek judicial clarity. He noted, “They simply said, Look, we now agree with the SEC.”
Assessing the appeal’s prospects, Deaton cautiously expressed optimism, recognizing the high stakes for individuals’ savings. He noted, “It’s certainly 50/50,” while also acknowledging the unpredictability of the judicial process.
Deaton further remained hopeful about the outcome of Coinbase’s motion, stating, “I think there’s a good chance she grants it.”
Responding to Judge Failla’s reference to Judge Rakoff’s opinion, Deaton defended Bitcoin’s intrinsic value, stressing the importance of its ecosystem. He argued, “The intrinsic value is the ecosystem, this decentralized, impenetrable software that gives you a very finite number of tokens.” He questioned traditional narratives surrounding crypto classification, stressing the need for regulatory clarity to protect individuals’ rights.
Coinbase’s recent interlocutory appeal, following the court’s rejection of its motion to dismiss the lawsuit, centers on whether an investment contract necessitates a contractual element, according to Coinbase chief legal officer Paul Grewal.
Deaton has been a staunch critic of Senator Warren and SEC Chair Gary Gensler for their rigid stance towards the crypto industry. He’s actively campaigning for a Senate seat, aiming to replace Senator Elizabeth Warren, who has been skeptical of cryptocurrencies. Earlier this week, Deaton surpassed Senator Warren in fundraising for the first quarter of this year, amassing a staggering $1.36 million compared to Warren’s $1.09 million.
