Lawyer John Deaton Slams the SEC Over Regulation of Crypto

• John Deaton slammed the SEC for its haphazard regulation of crypto.
• Deaton said that he would continue to represent 75,000 XRP token holders pro bono. 
• The lawyer stands against Senator Elizabeth Warren in Massachusetts.

John Deaton, a leading attorney in the cryptocurrency domain, explained on X (formerly Twitter) how the SEC’s approach to crypto regulation is confusing and inconsistent for market participants.

Deaton, now a Republican candidate challenging Massachusetts Senator Elizabeth Warren, has filed to appear as amicus counsel in the SEC’s Second Circuit appeal against Ripple, as shared in a post by Fox Business journalist Eleanor Terrett, a notable source for crypto news.

The crypto lawyer stated that he would continue to fight for clarity in the digital asset space “pro bono” regardless of the outcome of his Massachusetts Senate campaign. Deaton is trying to assist 75,000 XRP token holders including 627 who live in Massachusetts who could be directly impacted by the SEC’s latest appeal in the Ripple lawsuit.

Judge Analisa Torres, appointed by former President Barack Obama, ruled in 2023 that XRP itself does not qualify as a security, making its sale on exchanges like Coinbase legal. Deaton highlighted that Ripple co-founder Chris Larsen recently used XRP to donate millions to Vice President Kamala Harris, which underscored the practicality of XRP for transfers and donations. 

Read also: Ripple CEO Backs John Deaton in Massachusetts Senate Race

Deaton expressed his frustration at the fact that while XRP can be easily used to send or donate money legally, the SEC’s appeal makes no sense. Coinbase has also been sued by the “rogue out-of-control” SEC under the leadership of Gary Gensler, the lawyer said, noting that it was the same agency that thought allowing Coinbase to go public was a necessity a few years ago. 

A seemingly frustrated Deaton added:

“If the above doesn’t make your head spin like the possessed girl in the movie, The Exorcist, and prove, just how ass backwards the current regulatory environment is, in the United States, I don’t know what does.”

Warren Mocks Deaton’s Efforts

Deaton noted that Senator Warren had mocked his efforts to support XRP holders, particularly the 627 residents in Massachusetts he advocates for. Despite her comments, Deaton remains committed to speaking for crypto token holders, a duty he feels Warren has failed to adequately address.

Deaton expressed that he will continue his advocacy either as a U.S. Senator or private citizen, particularly in response to the SEC’s “ridiculous” appeal challenging Judge Torres’ ruling on XRP’s legal status.