In recent developments surrounding the crypto world, lawyer John E. Deaton, known for his pro-XRP stance, has hinted at a potential significant defeat for the Securities and Exchange Commission (SEC) in its ongoing case against Coinbase.
Pro-XRP Lawyer Deaton Gives Major Prediction
Deaton took to Twitter to express his thoughts on the SEC’s recent motion against Coinbase. He remarked that before the SEC filed its opposition to Coinbase’s motion to dismiss, he placed the odds of Coinbase winning at 40%. He added that this is an extraordinarily high percentage for victory on a motion to dismiss.” Deaton noted that, typically, the likelihood for victory in such motions wouldn’t exceed 10%.
Deaton added:
After reading the SEC Opposition, the odds have improved in Coinbase’s favor and stands, at least, at 50%. The SEC’s Opposition is lacking in the most important area of all: the law.
Drawing comparisons to his earlier predictions regarding Ripple’s legal battles, Deaton said, “I confidently predicted the Ripple XRP summary judgment on live TV on Fox Business with Liz Claman and Charles Gasparino and I practically guaranteed Judge Torres would deny the SEC’s request for an interlocutory appeal.”
However, he also cautioned that this current Coinbase decision is more intricate than the Ripple case, highlighting the unpredictable nature. Despite that, Deaton concluded, “I believe Judge Failla could hand down the biggest loss to the SEC to date.”
Coinbase Vs. SEC Goes Into Next Round
This assertion came in response to a tweet by Coinbase’s Chief Legal Officer, Paul Grewal, who expressed his exasperation with the SEC’s recent filing. Grewal emphasized, “The SEC just filed its opposition to our motion to dismiss their case against Coinbase. It’s more of the same old same old. But don’t just take my word for it – take a look for yourself.”
Grewal took specific issue with the SEC’s lack of legal citations, challenging their claims and emphasizing that the assets listed on Coinbase’s platform are outside the SEC’s jurisdiction.
Grewal went on to highlight recent court decisions, reaffirming that assets like the ones listed on Coinbase aren’t securities. Drawing a provocative parallel, he said, “The SEC’s arguments today would mean that everything from Pokemon cards to stamps to Swiftie bracelets are also securities.” Grewal also pointed out last week’s statements by Rep. Ritchie Torres, a Congressman for New York, who asserted that such an interpretation is not in line with existing laws.
Furthermore, the Coinbase CLO criticized the SEC’s regulatory approach, accusing it of sidelining a large crypto constituency in the US. Grewal shed light on a recent initiative where founders from over 40 crypto companies congregated in Washington DC under the banner of “Stand With Crypto”, urging legislators to consider rules that foster innovation while protecting consumers.
Notably, the SEC’s recent motion follows closely on the heels of a significant setback in the Ripple case. US District Court Judge Analisa Torres dismissed the SEC’s interlocutory appeal. In her October 3 court order, Judge Torres determined that the SEC did not meet the requisite criteria, citing a lack of clear controlling legal questions and insufficient grounds for divergent opinions on the issue.
At press time, XRP traded at $0.52975.
Featured image from TronWeekly, chart from TradingView.com