Classification of cryptocurrencies as securities remains a critical issue in the crypto community, given the ongoing lawsuits against Binance and Coinbase. John Deaton, one of the leading lawyers defending XRP, opposed the idea. Deaton pointed out that XRP and several altcoin projects are “commodities”. It’s worth noting that the altcoins the lawyer mentioned have already been labeled as “securities” by regulators. Here are the details…
John Deaton drew attention to XRP and these altcoins
Deaton; He argued that tokens such as ADA, MATIC, XRP, and ALGO should not be labeled as securities. He emphasized that these cryptoassets are strings of code that exist in software and “travel” in cyberspace. The attorney argued that the classification of tokens as securities should be determined by the landmark Howey case, which sets a precedent in the evaluation of investment contracts. It is worth noting that Deaton’s statements are in response to crypto lawyer Jeremy Hogan’s analysis of Coinbase’s recent court filing in its ongoing lawsuit with the US Securities and Exchange Commission (SEC). cryptocoin.com As we reported, Coinbase has filed a petition to dismiss the SEC’s lawsuit. He described the regulator’s claims as beyond regulatory and legal boundaries.
Also, Deaton referred to the Telegram case where the GRAM token was not recognized as a security by the court. In his view, the court said it was “immaterial” whether the underlying asset was speculative or had intrinsic value. Using analogies to tangible assets such as gardens, animals, beverages, chinchillas or real estate, Deaton argued that labeling a token as a security based solely on the seller or the circumstances surrounding the sale is an unconstitutional shortcut. Crypto lawyer Jeremy Hogan, who started the conversation thread, tweeted that the main challenge Coinbase is facing in its legal battle with the SEC. Hogan said that Coinbase had to defend the non-security status of a large number of tokens. He also stated that this constitutes a significant obstacle in the case.
Deaton comments on the Coinbase lawsuit
Recently, Deaton praised the filing by Coinbase’s lawyers in the ongoing lawsuit between Coinbase and the SEC. Deaton appreciated Ripple’s efforts while thanking Ripple’s legal team and other legal professionals he met on Twitter, including Paul Grewal. Coinbase’s lawyers informed Judge Failla at the inauguration that they plan to submit “a motion to decide on the allegations” under Rule 12c. This move surprised many who were waiting for them to file a motion to drop the case under Rule 12b. This means that when considering the case, the judge may consider other petitions submitted in the case, including the defendant’s response to the complaint.
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For the continuation of the article, Famous Lawyer Announced: XRP and These 3 Altcoins, Commodities!