SEC’s Aggressive Crypto Stance Resulted in $15 Billion Loss, Claims John Deaton #SECCryptoAccounting
Deaton said the SEC’s actions have led to losses exceeding $15 billion for retail investors
John Deaton, a well-known pro-crypto attorney and U.S. Senate candidate, has accused the Securities and Exchange Commission (SEC) of causing significant financial harm to small investors through its regulatory approach to cryptocurrencies.
In a recent post on X, Deaton said the SEC’s actions have led to losses exceeding $15 billion for retail investors.
Deaton, who has represented thousands of XRP holders in legal proceedings, claimed the SEC’s enforcement practices amounted to “gross overreach,” significantly impacting small investors.
“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.
SEC Faces Scrutiny for its Aggressive Regulatory Stance
His criticism comes at a time when the SEC has faced increasing scrutiny for its aggressive regulatory posture toward the crypto industry.
Deaton, who won the Republican nomination for the U.S. Senate in Massachusetts, is set to challenge Democratic Senator Elizabeth Warren in the upcoming November election.
He highlighted that he intends to hold the SEC accountable, particularly since, in his view, Senator Warren has been reluctant to do so.
The critique of the SEC coincides with a surprising shift in the agency’s stance regarding.
In a court filing shared by Coinbase’s Chief Legal Officer, Paul Grewal, the SEC acknowledged that it no longer views cryptocurrencies themselves as securities.
“The SEC regrets any confusion it may have invited” by previously suggesting that tokens themselves were securities,” the SEC’s amended complaint against Binance included a notable statement.
This represents a departure from the SEC’s earlier position, particularly regarding XRP, which had been classified as a security in past legal disputes.
