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Ripple advocate and prominent crypto attorney John Deaton has revealed that he is supporting the recent lawsuit that American crypto exchange Coinbase Global Inc filed against the United States Securities and Exchange Commission (SEC). While it is not a common thing to file a lawsuit against the regulator, Deaton is particularly pleased that Coinbase followed in his footsteps in filing the second Writ of Mandamus against the commission.
The @coinbase filing today is the 2nd Writ of Mandamus filed involving Crypto. I ❤️ the Petition b/c I filed Crypto’s 1st Writ of Mandamus when I sued the SEC asking a judge to order the SEC to do its job and amend the @Ripple Complaint to only include direct sales by Ripple. https://t.co/9hd8ZyRhup
— John E Deaton (@JohnEDeaton1) April 25, 2023
Deaton said he was the first person to file such a lawsuit in the history of the crypto ecosystem in the country, and it was on behalf of XRP. According to him, his Writ of Mandamus was targeted at getting the SEC to amend its complaints against Ripple by limiting the focus to XRP coins sold by the blockchain payments firm.
The SEC had alleged that XRP was sold as a security and the regulator had indicted even secondary sales of the digital currency. While Deaton was not fixated on the key details of his own lawsuit, he was more amused that more entities in the industry are standing up to the SEC and demanding better regulatory governance.
Drawing parallels with the Coinbase lawsuit, Deaton said the SEC cannot keep citing one case to back its claims based on the Howey Test that was formed more than seven decades ago.
Alex DovbnyaVolatile regulatory climate in U.S.
The United States is becoming quite polarized when it comes to crypto regulation. Notably, the SEC has been cracking down on entities in the region on the grounds that most of their hosted tokens or services are securities offerings.
The crypto community and even lawmakers have criticized the commission and have called for clear regulatory guidelines to abide by. But SEC Chairman Gary Gensler has maintained that existing securities laws are more than enough of a guide for the crypto community to adhere to.
While the SEC has time to prepare for the Coinbase suit, the regulatory tussle in America is undoubtedly heating up across the board.
Alex Dovbnya
Dan Burgin
U.Today Editorial Team
Vladislav Sopov