Pro XRP Attorney Reacts as Mark Cuban and Elon Musk Files Brief to Overhaul SEC Administrative Proceedings

XRP-friendly attorney John Deaton has reacted to a recent brief filed by billionaires Elon Musk and Mark Cuban against the SEC.

Pro-crypto and XRP-friendly lawyer John Deaton has shared his thoughts on a recent move by billionaires Elon Musk and Mark Cuban. The billionaires, alongside three other prominent figures, filed an amicus brief earlier this week arguing against the current administrative proceedings used by the United States Securities and Exchange Commission (SEC).

The brief is in connection with a long-standing Supreme Court pending lawsuit involving the regulatory agency and hedge fund manager George Jarkesy. The Supreme Court ruled in May 2022 that the SEC may have violated the Constitution in the manner in which its administrative proceedings handled a case involving the hedge fund manager.

Hence, the recent amicus brief urges the Supreme Court to dissolve the SEC’s right to choose whether it would grant parties “their constitutional right to jury trials, or [force them] to proceed in enforcement proceedings with administrative law judges (the SEC in-house judges).” 

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The brief argues that the SEC’s in-house judges are “immune from proper and meaningful oversight.” It further claims that the results from such cases are often “unfair and unjust” to the company or individual against which the SEC brings enforcement action.

As per the brief, such an outcome is likely since the SEC’s administrating proceedings make the agency the only fact-finder in the case while also granting it the right to impose punishment on the litigant. Besides, members of the investing public miss out on critical information that the SEC mandates “to be disclosed in other contexts.”

It is noteworthy that although the Supreme Court is not obligated to act based on an amicus brief, such a filing typically provides supporting information. The court may choose to consider the presented facts and cite them while making a decision.

Pro-XRP Lawyer Backs Case to Dissolve SEC Administrative Proceedings

In a post on X, Attorney John Deaton expressed delight in seeing Elon Musk and Mark Cuban take the fight to the SEC to seek a dissolution of the agency’s administrative proceedings. Deaton revealed he had filed a case against the SEC to similar effect three years ago and urged crypto-related companies to do the same.

The experienced lawyer also shared additional reasons why the SEC is not to be trusted. Specifically, he argued that the agency promotes agendas and policies that favor their friends and companies they want to work with when they leave the agency.

John Deaton cited case studies involving past SEC officials William Hinman and Jay Clayton. He alleged that the officials collaborated to drive policies that promoted Bitcoin and Ethereum as non-securities, making it easier for them to secure favorable roles in related companies after leaving the SEC.

Attorney John Deaton, lastly, called for a restructuring of the SEC, including the implementation of a law that debars former officials from working in an industry they previously regulated. He labeled it a “revolving problem” that must be addressed for the agency to regain public trust.