Attorney Believes Coinbase Has a Strong Chance of Winning Lawsuit Against SEC
An attorney representing XRP investors in the SEC lawsuit, John E Deaton, has expressed his belief that Coinbase has a high probability of winning its legal battle against the Securities and Exchange Commission. Deaton states that Coinbase has “better than 50%” chance of victory at the District Court level, with even better odds at higher court levels. He also suggests that the days of the SEC unconstitutionally expanding Howey are limited.
SEC’s Lawsuits Against Coinbase and Binance
Prior to suing Coinbase for allegedly trading unregistered securities, the SEC had initiated a similar case against Binance, another major cryptocurrency exchange. The agency accuses both exchanges of breaching laws and offering trading services involving unregistered securities.
The SEC vs. Ripple
The most prominent lawsuit involving the SEC is its case against Ripple. The dispute began in December 2020 when the Commission claimed that Ripple sold XRP tokens as an unregistered security offering. The legal battle has progressed through various stages, with both parties exchanging accusations. Ripple recently achieved partial wins when a federal judge ruled that its XRP sales did not constitute an offer of investment contracts, and when CEO Brad Garlinghouse and Executive Chairman Chris Larsen were cleared of all claims brought by the regulator. The final trial is scheduled for April next year.
Hot Take: Coinbase’s Chances Against the SEC
Based on attorney John E Deaton’s assessment, there is optimism surrounding Coinbase’s legal battle against the SEC. With a strong chance of victory at the District Court level and even better odds at higher court levels, Coinbase may have a favorable outcome in its case. This highlights potential limitations on the SEC’s ability to expand regulations unconstitutionally. The ongoing lawsuits against Coinbase, Binance, and Ripple are significant events shaping the regulatory landscape of the cryptocurrency industry.
By
By
