- John E. Deaton, a pro-XRP lawyer, predicts a probable setback for the SEC in the ongoing Coinbase litigation.
- Coinbase’s Chief Legal Officer, Paul Grewal, challenges the SEC’s stance, emphasizing assets on Coinbase are beyond the SEC’s purview.
Coinbase’s Battle with SEC Intensifies
Coinbase, one of the prominent names in the cryptocurrency domain, finds itself in the midst of a tumultuous legal showdown with the Securities and Exchange Commission (SEC). Recent remarks by lawyer John E. Deaton, known for championing the cause of XRP, suggest that the regulatory body might be on the brink of a major defeat.
Deaton, voicing his expert predictions on Twitter, mentioned that prior to the SEC laying out its opposition to Coinbase’s motion for dismissal, he estimated Coinbase’s victory odds at a whopping 40%. In legal parlance, this is quite significant, given that such motions usually hover around a mere 10% success probability. Post studying the SEC’s opposition, Deaton observed that its arguments lacked legal gravitas, raising Coinbase’s success chances to an even 50%.
Drawing parallels from his past analysis, Deaton reminisced about his on-air predictions concerning Ripple’s legal challenges, where he had confidently projected the Ripple XRP summary judgment. Yet, he also indicated that the current Coinbase scenario is layered with complexities, potentially more so than the Ripple case. Nevertheless, he expressed a bold sentiment, speculating that Judge Failla might deliver a considerable blow to the SEC.
SEC’s Jurisdiction Questioned
Paul Grewal, Coinbase’s Chief Legal Officer, expressed his discontentment with the SEC’s recent filing. He openly challenged the regulatory body’s scanty legal citations and stressed that the assets featured on Coinbase’s platform fall outside the SEC’s regulatory umbrella. Grewal astutely highlighted some recent court verdicts, which reaffirmed that assets like those on Coinbase do not qualify as securities. Taking a sharp jibe, he analogized the SEC’s present arguments to classifying collectibles like Pokemon cards and Swiftie bracelets as securities, a perspective that he, alongside New York Congressman Rep. Ritchie Torres, deemed inconsistent with current legal frameworks.
In addition, Grewal accentuated the SEC’s flawed regulatory approach, alluding to its alleged disregard for a significant crypto demographic in the US. Illustrating the mounting resistance, he referred to a recent “Stand With Crypto” campaign in Washington DC, initiated by over 40 crypto-based entities, which petitioned for regulations that balance innovation and consumer protection.
Lastly, this ongoing fracas closely follows the SEC’s recent stumble in the Ripple litigation, where US District Court Judge Analisa Torres overruled the SEC’s interlocutory appeal, spotlighting the absence of clear legal questions and grounds for varied opinions. As the legal landscape continues to evolve, at the time of reporting, XRP stood at $0.52975.
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