John Deaton’s Bold Predictions on Coinbase vs. SEC Lawsuit

The post John Deaton’s Bold Predictions on Coinbase vs. SEC Lawsuit appeared first on Coinpedia Fintech News

John Deaton, attorney and Founder of Cryptolaw US, stirred up the social media space with his recent tweet concerning Coinbase’s ongoing legal tussle with the U.S. Securities and Exchange Commission (SEC). This comes after significant developments in another SEC-related crypto lawsuit involving Ripple and its native token, XRP.  

John Deaton’s Optimistic Take on Coinbase

In a tweet thread, John Deaton didn’t shy away from putting percentages to his predictions, elevating the odds for a Coinbase victory from an “extraordinarily high” 40% to an even more promising 50%, after reading SEC’s opposition. According to Deaton, the SEC’s opposition to Coinbase’s Motion to Dismiss “is lacking in the most important area of all: the law.”

His viewpoint gains extra weight, considering his past predictions on the Ripple vs. SEC saga, where he was spot-on regarding critical aspects of the case. He said SEC would be denied for interlocutory appeal, and that’s what happened!

Ripple Case: A Turning Point in Crypto Legislation?

While Deaton’s main focus was on Coinbase’s upcoming reckoning, he also took the opportunity to reflect on the recent developments in the Ripple lawsuit. The SEC suffered a setback when Judge Analisa Torres denied their motion to appeal a previous loss. 

The Ripple case set significant precedents, especially concerning applying the Howey Test to digital assets. Judge Torres ruled that the Howey Test was irrelevant in the Ripple lawsuit, posing further questions about its applicability in future crypto cases.

What This Means for the 52-Million Strong Crypto Community

Paul Grewal, Coinbase’s Chief Legal Officer, highlighted that the SEC’s “regulation by enforcement” approach doesn’t consider the demands and expectations of the 52-million-strong crypto community in the U.S. Last week, over 40 crypto companies rallied in Washington D.C. to call for legislation that “protects consumers, enables innovation, and creates jobs and opportunities in the US.”

Coinbase is set to file its reply on October 24, a crucial next step in their legal battle. John Deaton’s predictions may offer hope, but nothing is certain yet. The larger crypto community will be watching closely, understanding that the outcome will affect Coinbase and set a precedent for future regulatory approaches to cryptocurrencies.

Meanwhile, a trial for Ripple is set for April 2024. One thing is clear: the fight for sensible crypto regulation is heating up, and the SEC is finding itself increasingly under scrutiny.