The esteemed pro-XRP attorney John Deaton has submitted a request to serve as amici counsel on behalf of 4,701 Coinbase customers in the ongoing legal battle between the cryptocurrency exchange Coinbase and the Securities and Exchange Commission (SEC). Deaton’s move comes as Coinbase seeks judicial clarity on whether digital assets, such as cryptocurrencies, can be classified as investment contracts when no underlying contract exists.
In an exclusive interview with Fox journalist Eleanor Terrett, Deaton delved into the intricacies of Coinbase’s appeal amid the SEC case. “It’s really about a clarity of law in the SEC not doing its job in providing guidance in the digital asset space,” remarked Deaton. Moreover, he underscored the importance of regulatory clarity from the SEC’s side toward the crypto domain.
John Deaton Opens Up On Coinbase Vs SEC Case
Moreover, the conversation focused on the strategic planning by Coinbase in its pursuit of legal clarity. Deaton lauded Coinbase’s decision to mirror the SEC’s strategy in the Ripple case. He noted, “They simply said, Look, we now agree with the SEC.”
He added, “The SEC made this argument in the Ripple case, and they went to the court, and that was Judge Torres, and said, The Second Circuit needs to clear this up.” Despite this, Judge Torres declined to address the issue, setting a precedent for the current situation.
Coinbase is now leveraging this precedent, asserting that the Second Circuit must clarify certain ambiguities in the regulations. Deaton explained, “Judge, we think that the Second Circuit needs to clear this vagueness up. And the SEC should agree because they made the same argument in the Ripple case.” This strategic move, according to Deaton, is “boxing [the SEC] in,” limiting their options and potentially influencing the court’s decision.
In addition, the lawyer expressed guarded optimism about the appeal’s prospects in the Coinbase vs SEC case. He acknowledged, “It’s certainly 50/50.” Deaton highlighted the stakes involved, emphasizing that individuals’ life savings are at risk.
However, Deaton acknowledged the unpredictability of the judicial process. He stated, “It’s hard for me to handicap what Judge Failla is going to do.” Despite this uncertainty, he expressed optimism about the likelihood of Coinbase’s motion being granted. He noted, “I think there’s a good chance she grants it.”
Also Read: Coinbase CEO Reacts As Board Member Kathryn Haun Resigns
Deaton Defends Bitcoin
Terrett’s inquiry into Judge Failla’s reference to Judge Rakoff’s opinion sparked a spirited discussion on the intrinsic value of Bitcoin (BTC). Deaton passionately defended Bitcoin’s intrinsic value, which has been questioned by Senator Elizabeth Warren, Peter Schiff and others. Moreover, he argued, “The intrinsic value is the ecosystem, this decentralized, impenetrable software that gives you a very finite number of tokens.”
Furthermore, he refuted the notion that the presence of an ecosystem should determine a digital asset’s classification as an investment contract, challenging conventional narratives about the crypto landscape. Meanwhile, Deaton’s insights into the legal nuances of the Coinbase vs SEC case shed light on the broader implications for crypto regulation.
He emphasized the imperative for regulatory clarity to safeguard individuals’ rights as the crypto regulatory domain is still evolving. “The government shouldn’t be in the business of telling people what they can own and what they can’t own,” declared Deaton.
Also Read: XRP Price Prediction As XRP Hits $0.5 Amid Ripple Vs. SEC Intense Legal Battle
The post Coinbase Vs SEC: Pro-XRP John Deaton To Appear As Amici Counsel appeared first on CoinGape.
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