Pro-crypto attorney John Deaton accused the U.S. Securities and Exchange Commission (SEC) of causing retail investors to lose more than $15 billion due to its excessive intervention in the crypto market.
Accusations of SEC Overreach
Attorney John Deaton, a U.S. Senate candidate, criticized the SEC's excessive intervention, claiming it cost retail investors $15 billion. Deaton argued the SEC should be held accountable for its actions. In a post on September 13, Deaton stated: 'The SEC’s misconduct and gross overreach caused small investors over $15 billion. On behalf of those 75K small investors I represented, we do not accept the SEC’s apology.'
SEC Changes Stance on Cryptocurrencies
The SEC clarified that cryptocurrencies themselves are not considered securities, according to a court filing. This marked a significant shift in the regulator's stance. In its statement, the SEC expressed regret for the confusion caused by its previous declarations. The SEC's earlier position that tokens are securities had been widely criticized. Previously, the SEC maintained that the XRP token was a security, as highlighted by Deaton: 'All I asked was for the SEC to honor the law and make clear that the token itself (XRP) was NOT the security.'
SEC's Enforcement Action Surge
In 2024, the SEC set a record for enforcement actions against crypto companies, imposing fines totaling nearly $4.7 billion, up more than 3000% from 2023. This record was achieved following a $4.47 billion settlement with Terraform Labs and its former CEO Do Kwon in June.
John Deaton emphasized the need to hold the SEC accountable for its actions in the crypto market, highlighting the significant impact of the regulator on the industry and the importance of legal compliance.
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