Elizabeth Warren’s challenger in the Massachusetts senate race, John Deaton, is showing his support for Coinbase in its ongoing legal battle against the SEC. Deaton, a crypto attorney and senate candidate, plans to file an amicus curiae brief in support of Coinbase’s interlocutory appeal. The exchange platform has been sued by the SEC for allegedly violating securities law by operating as an unregistered crypto trading platform. Coinbase has filed an appeal in hopes of obtaining regulatory clarity on the classification of digital assets. Deaton criticizes the SEC’s inconsistent stance on whether digital assets are securities, calling it “plain dumb.” This move by Deaton comes after his recent criticism of the U.S. government’s regulation-by-enforcement approach to cryptocurrencies. The SEC has faced backlash for its heavy-handed regulatory tactics, and Warren has been an advocate for stricter digital asset regulation. Deaton’s support for Coinbase reflects the growing tension surrounding the government’s treatment of the digital asset ecosystem. The outcome of Coinbase’s legal challenges and its effect on the SEC’s regulatory stance remain uncertain.
