John Deaton, a prominent pro-cryptocurrency lawyer and Republican Senate candidate, claims the U.S. Securities and Exchange Commission’s (SEC) overreach into the cryptocurrency industry has resulted in more than $15 billion in losses for retail investors.

The SEC has been frequently criticized for its overly strict regulatory policies toward the cryptocurrency sector. John Deaton, a lawyer and Republican Senate candidate, said the SEC should be held accountable for the damage, as the agency’s “excessive actions” have caused up to $15 billion in losses to investors.

“The SEC’s misconduct and egregious overreach have caused more than $15 billion in losses to retail investors. On behalf of the 75,000 investors I represent, we refuse to accept the SEC’s apology.”

Deaton also said he intends to hold the SEC accountable for its regulatory actions, since Sen. Elizabeth Warren will not do so. The statement comes two weeks after Deaton won the U.S. Senate nomination in the Massachusetts primary and is preparing to face Democratic Sen. Elizabeth Warren in November.

SEC Abandons Previous Stance on Cryptocurrencies

The SEC appears to be changing its previous stance on treating cryptocurrencies as securities. As Bitcoin Magazine reported, the SEC clarified that cryptocurrencies themselves are not securities in an amended complaint against Binance:

“The SEC regrets that it has caused confusion by repeatedly falsely claiming that the tokens themselves are securities.”

This statement is seen as a notable change, as the SEC had previously asserted that XRP was a security, which was criticized by Deaton:

“All I ask is that the SEC respect the law and clarify that the XRP token is not a security. The lawyers at the SEC not only refuse to do so, but also attack me personally.”

On September 12, the SEC reached a settlement with eToro, requiring the trading platform's U.S. arm to stop trading nearly all of its crypto assets and pay a $1.5 million fine.

SEC Crypto Enforcement Ramps Up

The SEC had a record-breaking year in crypto regulatory enforcement, with a more than 3,000% increase compared to 2023. As of September 10, the SEC had issued nearly $4.7 billion in fines against crypto companies and executives in 2024, a figure that far exceeds the total fines from 2013 to 2023.

The SEC's biggest success this year was the $4.47 billion settlement with Terraform Labs and former CEO Do Kwon in June, which was billed as the “largest enforcement action ever.”

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