Prominent pro-crypto lawyer John Deaton is set to file an amicus brief supporting Coinbase's motion for an interlocutory appeal against the U.S. Securities and Exchange Commission (SEC). This move comes as the legal tussle between Coinbase and the SEC intensifies, with both parties seeking clarity on the regulatory status of digital assets.

On April 26th, Fox News reporter Eleanor Terrett revealed that Deaton would be filing the amicus brief, highlighting the urgent need for legal clarity surrounding digital assets. The brief will focus on the SEC's inconsistent approach to regulating the crypto industry, drawing attention to the detrimental impact this lack of consistency has had on industry participants.

To bolster his argument, Deaton plans to cite several high-profile court cases, including Ripple, LBRY, and Telegram. Additionally, he will reference previous SEC statements on cryptocurrencies and letters from various regulators and legislators expressing concerns over the agency's actions.

One of Deaton's key criticisms revolves around the SEC's shifting stance on whether crypto tokens themselves should be classified as securities. In a pointed remark, Deaton stated, "Bitcoin is certainly distinguishable from other cryptocurrencies, but claiming it's not a security unlike other tokens because it doesn't have an ecosystem is just plain dumb."

Deaton's involvement in the crypto legal landscape is well-established. In 2021, he filed a petition challenging the SEC's lawsuit against Ripple, alleging that the agency had classified Ripple's token as a security. More recently, Deaton announced his candidacy for the U.S. Senate, during which he has been vocal in criticizing SEC Chairman Gary Gensler's handling of the crypto industry.

The amicus brief comes at a pivotal juncture, as Coinbase filed an appeal in two courts in April, challenging part of its ongoing litigation with the SEC. Specifically, Coinbase has asked a higher court to consider whether a digital asset transaction that does not impose any obligations on the original issuer of the asset should be considered an investment contract, which would fall under the SEC's jurisdiction.

Through this legal maneuver, Coinbase aims to obtain clarity on the boundaries of the SEC's authority over certain crypto asset trading activities. The outcome of this appeal could have far-reaching implications for the entire cryptocurrency industry, which has long grappled with regulatory uncertainties.