Pro-Ripple Lawyer to Continue Fight Against SEC Over $15 Million in XRP Investor Losses

Massachusetts Republican Senate candidate John Deaton has indicated his intention to hold the US Securities and Exchange Commission (SEC) accountable for its role in wiping out $15 billion from retail XRP investors.

In a September 16 interview on the “Good Morning Crypto Show,” the attorney made it clear that he is prepared to continue his battle with the SEC until retail investors receive the compensation they deserve.

XRP investors left behind by SEC actions

Deaton, who represented more than 75,000 XRP token holders as an amicus curiae or “friend of the court” in the SEC’s lawsuit against Ripple Labs, was tight-lipped when discussing the financial damage caused by the aggressive litigation of the agency against the crypto company.

He claimed the SEC’s overreach and “misconduct” cost thousands of XRP holders up to $15 billion when the currency’s value plummeted as a result of the lawsuit.

He further added that his clients “do not accept the SEC’s apology” for its handling of the case. This was in response to the agency’s recent clarification on its use of the term “crypto-asset securities” in its various lawsuits against digital asset companies.

In a footnote to its amended complaint against Binance, the Commission said it regretted any confusion it may have caused with the use of the term. Deaton called it “willful misconduct” and demanded the firing of those responsible for making such decisions at the SEC.

Counsel has consistently argued that the Commission’s actions harm everyday investors. He suggested that the financial blow caused to XRP holders by the watchdog case is something that should be held accountable.

He added that he is awaiting the results of an Inspector General (IG) investigation into the matter, which could open the door to further legal action on behalf of XRP investors and possible reparations for any losses they may have suffered.

A high-stakes Senate race

In his campaign for the United States Senate, Deaton has positioned himself as an advocate for the common man, focusing heavily on transparency and accountability of government agencies.

He says his criticism of the SEC is a reflection of his broader view of overregulation in the financial sector. He also believes the regulator’s handling of crypto is indicative of a system that prioritizes enforcement over protecting everyday investors.

During the interview, the former Marine reiterated his plans to introduce laws to clarify the distinction between commodities and securities in the crypto space. He argued that this would protect retail digital asset holders from over-regulation in the future.

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