John Deaton
YEREVAN (CoinChapter.com) — Pro-crypto lawyer John Deaton is leading the charge against the U.S. Securities and Exchange Commission’s (SEC) regulatory actions in cryptocurrency. On Jan. 1, 2021, he filed a Writ of Mandamus against the agency. Specifically, he argued that the SEC violated 75 years of legal precedent.
Furthermore, the core of his argument was based on the SEC’s claim that tokens like XRP were securities, a stance with which Deaton strongly disagreed.
Legal Precedent Ignored in SEC’s Actions
Deaton highlighted that various assets, including orange groves, condos, chinchillas, and even beavers, had been marketed as investment contracts. However, these underlying assets had never been classified as securities themselves. His case focused on this key legal distinction, asserting that the SEC’s actions were inconsistent with established law.
In Deaton’s view, the SEC’s position on XRP and similar tokens broke away from the legal principles that have governed securities law for decades. As he noted,
“The underlying asset itself had NEVER been considered the security.”
Fighting for Individual Investors, Not Billionaires
In his battle with the SEC, Deaton represented over 75,000 individual token holders, many of whom were regular investors, not crypto billionaires.
He specifically intervened on behalf of 627 token holders from Massachusetts, calling on Senator Elizabeth Warren to act. Since Warren sits on the banking committee overseeing the SEC, Deaton contacted her office but received no response.
Deaton’s involvement in the case was driven by the potential impact on ordinary people’s savings. He emphasized that the SEC’s enforcement actions were affecting small investors, not just large institutions or wealthy individuals. Despite his efforts to seek clarification and fairness from the SEC, the agency’s lawyers attacked him personally.
John Deaton’s Legal Stand Against SEC. Source: @JohnEDeaton1
Judge Agrees with Deaton’s Legal Arguments
After hundreds of hours of pro bono work, Deaton’s legal efforts paid off when Judge Torres, a judge appointed by President Obama, agreed with his arguments. The judge ruled that the SEC lawyers had failed to follow the law and were more focused on winning the case than on protecting investors. This decision reinforced Deaton’s view that the SEC had acted improperly in its pursuit of enforcement against XRP holders.
The Cost of SEC’s Actions: $15 Billion in Losses for Small Investors
According to Deaton, the SEC’s misconduct has caused losses of over $15 billion for small investors. He also emphasized that the regulator’s overreach harmed the people it claimed to protect. On behalf of the 75,000 small investors he represented, Deaton stated that they would not accept the SEC’s apology.
Deaton’s statement also targeted Senator Warren, criticizing her for not stepping in to address the SEC’s actions. He pointed out that, as a private citizen, he had taken on a role that elected officials should have fulfilled. He concluded his message by expressing his determination to hold the SEC accountable if he is elected to the U.S. Senate.
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