Coinbase shocked the crypto market today by filing a petition to dismiss the SEC lawsuit. The US-based exchange claims that the SEC has no authority over cryptocurrencies on its platform. Famous XRP lawyer John Deaton comments on the latest developments as follows.
John Deaton says Coinbase is strong
After the hot development, Deaton made a long statement on Twitter about the balance of power between the two. According to the pro-XRP attorney, Coinbase is a strong competitor that could stand up to the SEC. Deaton makes 6 convincing points to support his thesis.
First of all, he stated that the US Congress started the legislative process for the industry. This stance of the regulator indicates that the legislatures are ready to deal with the key issues raised. Also, Deaton cited the regulatory gap argument posted via Hinman emails. He claimed that this gave the exchanges a better defense. cryptocoin.com As we reported, the documents appeared on June 13 and subsequently triggered a double-digit rally in XRP price.
Meanwhile, John Deaton says that Gary Gensler’s inadequacy for the cryptocurrency ecosystem has changed the balance. One of the main arguments of the SEC and Coinbase fight has to do with the offering of a product as an investment contract. Based on this, John Deaton noted that never before a Judge or a Court ruled on a case in which assets purchased on the secondary market were declared securities.
Is Coinbase in the lead?
As highlighted by Deaton and other crypto and legal experts, despite the recent positive developments, the chances of the case going the way the exchange expected are still slim. This is why Coinbase is experimenting with deliberate attempts to launch new products. One of the newest, the Base Layer-2 protocol built on Ethereum, is gaining traction as we work on new smart contracts that will efficiently increase the public’s adoption of Blockchain innovations.
Exchange denies SEC lawsuit
Coinbase took action today to dismiss the SEC lawsuit. He submitted a petition to the commission for this. The SEC previously sued Coinbase for allowing unregistered securities sales of 12 altcoins. Paul Grewal, Coinbase’s chief legal officer, argues that the SEC has no authority to do so. He claims the SEC’s claims are “far beyond current law.” The document submitted by Coinbase to the court includes the following statements:
Even if the SEC was right that the assets and services it identified were within the scope of its current regulatory authority, this lawsuit should be dismissed as a violation of Coinbase’s rights to due process and the process being an extraordinary misconduct.
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For the rest of the article, the Expert Commented: What Does Coinbase’s Latest Move Mean?