A Republican lawyer and crypto advocate who hopes to challenge Sen. Elizabeth Warren in the Massachusetts Senate race has filed a statement of support in Coinbase's conflict with the Securities and Exchange Commission. Coinbase wants a higher court to decide whether tokens that are traded on secondary markets without any obligation to the token issuers should be considered securities.. Deaton argues in favor of the exchange's efforts, saying the SEC is using an unconstitutional label in its allegations that trading of certain tokens violates securities laws.
Politician-turned-politician John Deaton further bolstered his credentials as an outspoken ally in crypto on Friday by filing a court brief as an expert in Coinbase Inc's bid. (COIN) force the highest US court to rule on a central issue. the question of when a digital token qualifies as a security.
Deaton, ONE of several Republican candidates vying for the opportunity to oppose Sen. Elizabeth Warren (D-MA), has filed an amicus brief seeking to support Coinbase's arguments in its fight with the Securities and Exchange Commission (SEC).. Earlier this month, the exchange filed a so-called interlocutory appeal seeking leave to obtain a separate ruling on a narrow legal argument — whether a digital asset transaction that does not impose any obligations to the original issuer of the asset should be considered SEC-regulated.. investment contract.
Deaton argued that the «politically driven, compromised agency» is relying on its interpretation of a legal tool known as the Howey test to permanently designate tokens as securities, which is beyond its authority.
“The Howey test is an analysis of every transaction,” says Deaton. “There are thousands of digital assets and thousands, sometimes millions of transactions taking place on various blockchains. Because of this inconvenient reality, the SEC adopted an unconstitutional label, effectively declaring that all token transactions violate securities laws.”
The lawyer made similar comments during Ripple Labs' conflict with the US securities regulator, strengthening his reputation in digital asset circles.
As a Senate candidate, he still has to defeat several Republican candidates in the September primaries before he can face Warren in the November general election. Even if he gets that chance, polls in the state show Warren is likely to keep his Senate seat.
Deaton is scheduled to be among the speakers next month at the Consensus 2024 conference in Austin, Texas.
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