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Massachusetts Senate candidate John Deaton is submitting an amicus brief backing the <a href="https://coingape.com/coinbase-news-us-business-crypto-bodies-back-appeal-of-sec-rulemaking-petition-denial/" rel="noopener noreferrer nofollow">Coinbase exchange</a> in its appeal against the Securities and Exchange Commission (SEC). The brief underscores the urgent need for clearer digital asset regulations, pointing to what Deaton describes as the SEC’s inconsistent regulatory approach.
Deaton’s legal insights draw from various sources, including cases involving Ripple, LBRY, and Telegram. Deaton’s legal presumptiveness is based on different types of cases, such as Ripple, LBRY, Telegram, etc.&nbsp;
He also cites prior SEC positions on cryptocurrencies and numerous statements from regulators and legislators pointing out concerns with the agency’s regulatory approach. All these elements together show the complicated <a href="https://coingape.com/xrp-lawyer-john-deaton-volunteers-to-testify-before-us-congress/" rel="noopener noreferrer nofollow">crypto regulatory</a> landscape and the challenges that the industry participants have to face because of regulatory uncertainties.
<h2 id="legal-landscape-and-sec-s-inconsistencies">Legal Landscape and SEC’s Inconsistencies</h2>
Deaton, in his brief, criticizes the SEC for its inconsistent position on the determination of whether cryptocurrency tokens are securities. He singles out the SEC’s assertion that “ecosystem is the security,” claiming that the regulatory approach is a non-starter. According to Deaton, Bitcoin is distinct from other cryptocurrencies but the justification given by the SEC as to why it should not be classified as a security is inadequate and is not logically consistent.
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">
 <img src="https://s.w.org/images/core/emoji/15.0.3/72x72/1f6a8.png" alt="🚨" class="wp-smiley" style="height: 1em; max-height: 1em;">SCOOP: Massachusetts Senate candidate <a href="https://twitter.com/DeatonforSenate?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@DeatonforSenate</a>/<a href="https://twitter.com/JohnEDeaton1?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@JohnEDeaton1</a> is putting his <a href="https://twitter.com/hashtag/crypto?src=hash&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">#crypto</a> law hat back on and will file an amicus brief in support of <a href="https://twitter.com/coinbase?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">@Coinbase</a>’s motion for interlocutory appeal later today.
 In the brief, Deaton highlights the urgent need for legal clarity…
 — Eleanor Terrett (@EleanorTerrett) <a href="https://twitter.com/EleanorTerrett/status/1783869447435932066?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">April 26, 2024</a>
</blockquote>
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This criticism is part of a larger debate in the legal industry about the use of the Howey test for digital assets and their position within regulatory frameworks.
<h2 id="coinbase-s-challenge-to-sec-authority">Coinbase’s Challenge to SEC Authority</h2>
Coinbase has recently filed for an <a href="https://coingape.com/coinbase-files-interlocutory-appeal-challenging-sec-authority-on-crypto-transactions/" rel="noopener noreferrer nofollow">interlocutory appeal</a>, a procedural mechanism intended to challenge a particular aspect of the case before the trial begins. The appeal seeks review by the U.S. Court of Appeals for the Second Circuit and questions whether the SEC can classify a digital asset transaction as an investment contract when it does involve an obligation from the original issuer of the asset.
This filing is a confirmation of the fact that the SEC has created an open ground of disputes regarding the application of its authority over digital assets particularly after they have entered the secondary market.&nbsp;
According to Coinbase and other players in the industry, these assets should not fall under the SEC’s jurisdiction once they are detached from the context of the business in which they were created. The decision of this appeal would be crucial for the cryptocurrency sector and would also provide the level of regulatory control that applies to digital asset transactions
Read Also: <a href="https://coingape.com/ethereum-co-founder-vitalik-buterin-defends-switch-to-pos/?utm_source=cgtelegram" rel="noopener noreferrer nofollow">Ethereum Co-Founder Vitalik Buterin Defends Switch To PoS .</a>
The post <a href="https://coingape.com/breaking-senate-candidate-deaton-files-amicus-brief-in-coinbase-case/" rel="noopener noreferrer nofollow">Breaking: Senate Candidate Deaton Files Amicus Brief in Coinbase Case</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Breaking: Senate Candidate Deaton Files Amicus Brief in Coinbase Case

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