According to Cointelegraph: Prominent pro-crypto attorney and U.S. Senate candidate John Deaton has accused the Securities and Exchange Commission (SEC) of excessive intervention in the cryptocurrency industry, leading to retail investors losing over $15 billion. Deaton emphasized that he intends to hold the SEC accountable for its regulatory actions, especially since he believes Senator Elizabeth Warren “won’t do it.”
This statement comes just weeks after Deaton, a vocal advocate for XRP, secured the Republican nomination for the U.S. Senate in Massachusetts. He is set to face off against Democratic Senator Elizabeth Warren in the upcoming November election.
SEC's Changing Stance on Cryptocurrencies
In a surprising development, the SEC appears to be softening its stance on cryptocurrencies. A recent court filing indicated that the SEC no longer considers tokens themselves as securities. This shift came to light in an amended complaint against Binance, with the SEC expressing regret for the "confusion" caused by its previous statements regarding tokens being securities.
The move is seen as a major turnaround, particularly in light of the SEC's earlier position on XRP, which it had classified as a security. Deaton highlighted this irony, stating, "All I asked was for the SEC to honor the law and make clear that the token itself (XRP) was NOT the security."
Ongoing Criticism of the SEC
The SEC continues to face backlash for its regulatory approach to the cryptocurrency industry. Just recently, the commission settled with eToro, forcing the platform to halt trading for nearly all crypto assets in the U.S. and imposing a $1.5 million fine.
Deaton strongly criticized the SEC's actions, accusing the agency of "gross overreach" that has cost investors billions. In a post on X (formerly Twitter), Deaton said, “The SEC’s misconduct and gross overreach caused small investors over $15 billion. On behalf of those 75K small investors I represented, we do not accept the SEC’s apology.”
