John Deaton filed an amicus brief in support of Coinbase’s appeal against the SEC

Crypto attorney Coinbase, who is currently running a Senate campaign to unseat Elizabeth Warren, has filed a brief to appeal the lawsuit against the United States Securities and Exchange Commission (SEC).

In an April 26 filing in the U.S. District Court for the Southern District of New York, John Deaton filed an amicus brief on behalf of 4,701 Coinbase customers in support of the interlocutory appeal. According to the brief, the attorney filed the document pro bono to represent the interests of Coinbase's customers rather than the exchange.

Deaton cited the enforcement actions taken by the SEC as evidence that the regulator “does not speak on behalf of digital asset users and investors and does not intend to provide any regulatory guidance beyond citing the Hawaii case.” He cited the commission's civil cases against DebtBox, in which he said the SEC is “more interested in harming crypto companies than in maintaining integrity to truth and justice.” A judge ruled against the commission in this case.

While X's April 26 post directly ties Dayton's actions to his upcoming Senate run, he first identified himself as a legal representative to Coinbase customers in June 2023 — before his campaign announcement — after the SEC filed its charges. The April 19 filing indicated that his latest request to file an amicus brief was successful.

“It's important to allow the end users of the technology to be represented and speak for a biased and politically motivated agency,” said Deaton on X. “But that doesn't mean they want Coinbase to speak for them.”

Related: SEC Sues Bitcoin Miner Geoc, Accuses Founders of $5.6M Fraud

According to Paul Grewal, Coinbase's chief legal officer, the interlocutory appeals court used the term “investment contract” — one of the bases required to prove that something is a security under SEC rules — that requires contractual obligations after the sale. The legal issue is among many facing the crypto exchange in an SEC case.

It's unclear whether Deaton's legal work could affect his Senate campaign, with Election Day less than six months away. Both candidates for the Massachusetts seat in the US Senate have very different views on digital assets. Senator Warren signed a letter on April 25 calling for authorities to regulate the use of cryptocurrency for child sexual abuse material.

Magazine: Lazar Group's Favorite Exploit Revealed – Crypto Hacks Analysis