SEC’s Aggressive Crypto Stance Resulted in $15 Billion Loss, Claims John Deaton

John Deaton, a prominent pro-crypto attorney and U.S. Senate candidate, has accused the Securities and Exchange Commission (SEC) of causing over $15 billion in losses to small investors through its regulatory actions on cryptocurrencies. In a recent post on X (formerly Twitter), Deaton criticized the SEC for its “gross overreach,” claiming it significantly impacted retail investors, particularly those involved with XRP.

Deaton has represented thousands of XRP holders and has long advocated for regulatory clarity from the SEC regarding cryptocurrencies. He emphasized that the SEC’s inconsistent actions, including its classification of XRP as a security, led to prolonged legal battles and financial damage to small investors.

This critique comes amidst a broader pushback against the SEC’s aggressive enforcement of crypto regulations, with the agency recently settling a $1.5 million case with trading platform eToro and reaching a record $4.47 billion settlement with Terraform Labs and its former CEO, Do Kwon.

Deaton, who is challenging Senator Elizabeth Warren in the upcoming U.S. Senate election, also highlighted the SEC’s recent shift in stance. In a court filing against Binance, the SEC acknowledged it no longer views cryptocurrencies themselves as securities, a departure from its previous position.

In parallel, seven U.S. states, led by Iowa’s Attorney General, have filed an amicus brief challenging the SEC’s authority to regulate cryptocurrencies, calling it an overreach that could stifle innovation in the industry.