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Crypto lawyer John E. Deaton has shed light on the ongoing lawsuit between Coinbase and the U.S. Securities and Exchange Commission (SEC). Deaton, known for his advocacy for XRP, highlights the potential for a partial win for Coinbase, setting the probability of an absolute victory at a mere 5%. He bases his speculation on historical legal frameworks, particularly emphasizing that no charges have been leveled against asset sales on exchanges or secondary markets in almost eight decades, a fact that bodes well for Coinbase.
Drawing parallels with past cases, Deaton notes the significant influence of the Ripple vs. SEC ruling on the current lawsuit. The judgment by Judge Analisa Torres, stating that XRP cannot be classified as security, emerges as a strong supporting pillar for Coinbase’s defense. He commends Coinbase’s legal approach, pointing out the strategic foundation of their arguments against the SEC’s allegations, treating charges distinctly.
This methodical separation, Deaton asserts, is where Coinbase is poised to gain legal ground against the SEC. He admits that overcoming the lawsuit’s staking component entirely seems implausible.
Amid these legal maneuvers, Coinbase has actively sought to quash the SEC’s lawsuit, with accusations directed at the regulator for overstepping its jurisdiction and contradicting its securities law interpretations. Paul Grewal, Coinbase’s Chief Legal Officer, accentuates this by accusing the SEC of disregarding established limits set by Congress, highlighting the regulator’s tendency to misconstrue standard asset transactions as security sales.
In a noteworthy reference, Grewal invokes the XRP lawsuit to reinforce his argument, demonstrating the SEC’s inclination to exceed its authority. Responding to this, the SEC has petitioned the court to reject Coinbase’s dismissal motion, a move Ripple’s General Counsel, Stuart Alderoty, has labeled as unfounded.
Despite these intense legal back-and-forths, Deaton anticipates that the SEC might have the upper hand regarding the motion to dismiss. However, a substantial triumph for Coinbase looms, he suggests, particularly concerning the token asset sales, likely resulting from a decision split between different legal facets of the case.
The unfolding of this legal drama signifies critical developments for the cryptocurrency industry. The outcome of Coinbase’s strategic legal confrontations with the SEC will undoubtedly set precedents influencing future digital asset regulations and exchange operations.
Consequently, the stakes are high, and the crypto community is watching closely as each side unveils its legal arsenal in this landmark clash between a leading cryptocurrency exchange and the regulatory watchdog. The results of this case could chart the course for the treatment of digital assets in the United States for years to come.

Deaton foresees a partial victory for Coinbase against SEC

Cryptopolitan_News

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