Attorney Deaton fiercely confronts the U.S. SEC with regard to its rendition of the Howey test, which, according to him, is unconstitutional. As a prominent pro-XRP lawyer, Deaton seconded Paul Grewal, Coinbase’s legal officer, who said that the SEC is guilty of violating the law.
Grewal, who in response to the Major Questions Doctrine of the Supreme Court’s opinion in Nebraska, made a declaration that stirred contentious commotion within the — crypto — realm. Nevertheless, John Deaton argued resiliently that Grewal did hold the keys for the crux of the matter: the Securities and Exchange Commission, going against the law, unlawfully appended the Howey test.
To corroborate this claim — beyond Paul Grewal’s words — Deaton provided a host of inferences. These, going from the length of time the SEC had declined an appointing policy prohibiting its staff from virtual currencies to Gary Gensler’s confirmation reception in 2021 depicting an indisputable opinion gap on the proper regulation of crypto. He also noteworthy that the CFOA report from 2019 and two Supreme Court rulings —West Virginia vs. EPAand the Nebraska SCOTUSopinion — affirms the statements.
To further cement his point, Deaton noted previous Supreme Court cases getting directed towards the private sector for additional proving that there is not an investment contract between a grantee and an issuer with no intermediary communication. Not only that, but President Biden also released an executive order further limiting the scope of the SEC’s jurisdiction span and emphasizing the power of CFTC. In closing, Deaton summarized things in a sharp sentence:
“Paul Grewal is not being hyperbolic by claiming Gensler and the SEC are violating the law,” said Deaton.
