John Deaton, a prominent crypto attorney and advocate for Ripple, has come out in support of the recent lawsuit that American crypto exchange Coinbase filed against the United States Securities and Exchange Commission (SEC). The move is unusual, as it is not common for entities to sue regulators. However, Deaton is pleased that Coinbase has followed in his footsteps by filing a Writ of Mandamus against the commission.
Deaton claims that he was the first person to file such a lawsuit in the history of the crypto ecosystem in the US, and it was on behalf of XRP. The Writ of Mandamus was aimed 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.
The United States is becoming increasingly polarized when it comes to crypto regulation. 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. More entities are likely to come forward with lawsuits and challenges against the SEC as the debate over regulatory guidelines for the crypto industry continues to intensify. As the SEC seeks to enforce its authority, it will have to contend with a growing chorus of voices demanding clearer guidance and more robust governance in the sector.
