John Deaton, a vocal supporter of XRP, is reportedly contemplating joining Coinbase’s legal confrontation with the Securities and Exchange Commission (SEC).
Fox Business reporter Eleanor Terrett first brought attention to this development, citing Deaton’s potential involvement on social media platform X. Deaton, who has previously served as amicus counsel in significant crypto-related cases, including those involving Ripple and LBRY, may bring his expertise to bear in the ongoing lawsuit between Coinbase and the SEC.
Is U.S. Senate candidate @JohnEDeaton1 planning to get involved in the @coinbase case? 🤔
Deaton served as amicus counsel in both the @Ripple & @LBRYcom cases.
I’ll be interviewing John this week to get that question answered. https://t.co/JqHv9uSjar
— Eleanor Terrett (@EleanorTerrett) April 15, 2024
Background of the Coinbase vs. SEC Lawsuit
Coinbase is currently seeking an interlocutory appeal to the 2nd Circuit Court of Appeals, a move indicative of the escalating legal dispute with the SEC. The case stems from the SEC’s broader scrutiny of cryptocurrency platforms and assets, which many in the crypto community view as overreach.
Deaton has been forthright in his criticism of the SEC, especially of SEC Chairman Gary Gensler, whom he has labeled as a “bad faith regulator” with a politically driven agenda. His previous engagements as amicus counsel suggest that his participation could influence the dynamics of the Coinbase lawsuit.
In his various public statements and social media postings, Deaton has emphasized the need for clearer regulatory frameworks for cryptocurrencies. He argues that judicial intervention is crucial to establish these frameworks, given the SEC’s failure to provide necessary guidance for the industry.
Before his candidacy for the US Senate in Massachusetts, Deaton rallied around 5,000 Coinbase customers to form a putative class aimed at voicing their concerns independent of both the SEC and large cryptocurrency platforms like Coinbase. This move mirrored his earlier efforts in the Ripple case, where he represented over 75,000 XRP holders.
Deaton’s recent activities include creating platforms for Coinbase users to express their concerns about the SEC’s regulatory actions. He argues that while Coinbase’s legal team focuses on the interests of its employees and shareholders, the broader base of platform users lacks representation. By potentially joining the Coinbase lawsuit, Deaton aims to extend his advocacy to these users, ensuring their voices are heard in the judicial process.
Market and Community Reaction
The cryptocurrency community closely watches developments in the Coinbase vs. SEC lawsuit, as outcomes could set important precedents for the regulation of digital assets in the United States. Deaton’s potential involvement is particularly noteworthy given his past successes in representing cryptocurrency users in court.
Meanwhile, at press time, the value of XRP remains stable at $0.4932, per CoinMarketCap data, reflecting investors’ wait-and-see approach regarding the ongoing legal proceedings.
