-
A
Republican
lawyer
and
crypto
defender
who
hopes
to
be
Sen.
Elizabeth
Warren’s
opponent
in
the
Massachusetts
Senate
race
has
filed
a
supporting
brief
in
a
Coinbase
clash
against
the
Securities
and
Exchange
Commission. -
Coinbase
wants
to
get
a
higher
court
to
decide
whether
tokens
that
trade
on
secondary
markets
with
no
obligations
on
the
tokens’
issuers
should
be
considered
securities. -
Deaton
is
arguing
in
favor
of
the
exchange’s
effort,
saying
the
SEC
is
taking
an
unconstitutional
shortcut
in
its
accusations
that
certain
token
trading
violates
securities
laws.
Lawyer-turned-politician
John
Deaton
further
reinforced
his
credentials
as
an
outspoken
crypto
ally
on
Friday,
filing
a
friend-of-the-court
brief
in
Coinbase
Inc.’s
(COIN)
effort
to
get
a
higher
U.S.
court
to
rule
on
a
central
question
about
when
a
digital
token
qualifies
as
a
security.
Deaton,
one
of
several
Republican
candidates
vying
for
the
chance
to
oppose
Sen.
Elizabeth
Warren
(D-Mass.),
filed
the
amicus
brief
seeking
to
bolster
Coinbase’s
argument
in
its
fight
with
the
Securities
and
Exchange
Commission
(SEC).
The
exchange
filed
for
a
so-called
interlocutory
appeal
earlier
this
month,
seeking
permission
to
get
a
separate
ruling
on
a
narrow
legal
argument
–
whether
a
digital
asset
transaction
that
poses
no
obligation
to
the
original
issuer
of
the
asset
should
be
considered
an
SEC-regulated
investment
contract.
Deaton
contended
that
the
“politically
driven,
compromised
agency”
leans
on
its
interpretations
of
the
legal
tool
known
as
the
Howey
test
to
define
tokens
permanently
as
securities,
which
is
beyond
its
authority.
“The
Howey
test
is
a
transaction-by-transaction
analysis,”
Deaton
argued.
“There
are
thousands
of
digital
assets
and
thousands,
sometimes
millions,
of
transactions
occurring
on
various
blockchains.
Because
of
this
inconvenient
reality,
the
SEC
adopted
an
unconstitutional
shortcut
by
effectively
saying
all
transactions
of
the
tokens
violate
securities
laws.”
The
lawyer
had
similarly
weighed
in
during
Ripple
Labs’
clash
with
the
U.S.
securities
regulator,
establishing
his
reputation
in
digital
asset
circles.
As
a
Senate
candidate,
he
must
still
defeat
a
handful
of
Republican
candidates
in
the
September
primaries
before
he
can
face
Warren
in
the
November
general
election.
Even
if
he
gets
that
chance,
polling
in
the
state
suggests
Warren
is
highly
likely
to
retain
her
Senate
seat.
Deaton
is
scheduled
to
be
among
the
speakers
next
month
at
Consensus
2024
in
Austin,
Texas.
