Pro-XRP Lawyer Criticizes SEC’s Understanding of Investment Contracts
Paul Grewal, Chief Legal Officer of Coinbase, recently questioned the SEC’s understanding of investment contracts in relation to cryptocurrencies. He emphasized that the term “investments” does not automatically constitute “investment contracts” and highlighted that investment contracts must include rights to future income, profits, or assets of an enterprise. This aligns with the SEC’s own position in the Edwards case before the Supreme Court.
John Deaton’s Response: A Critique Of SEC’s Approach
John E Deaton, a pro-XRP lawyer and former federal prosecutor involved in the Ripple vs. SEC case, responded to Grewal’s statement with a strong condemnation of the SEC’s actions. Deaton reflected on his experience as a prosecutor, emphasizing the importance and honor of representing the United States. He criticized the current practices at the SEC and the Department of Justice (DOJ) and highlighted the differences between private attorneys and federal prosecutors in terms of their obligations to uphold justice and adhere to the law.
XRP Lawsuit Showcases Hypocrisy And Inconsistency
Deaton also pointed out alleged inconsistency and hypocrisy within the SEC, as highlighted by Judge Netburn in the Ripple case. He quoted Netburn’s statement about SEC lawyers lacking faithful allegiance to the law and being more concerned with winning arguments and advancing their agenda. This issue is not limited to the Ripple case but is seen in other legal battles involving Grayscale, Voyager Bankruptcy, and DebtBox. Deaton called for accountability at the SEC, suggesting that firings should start with Gary Gensler and SEC Enforcement Director Tenreiro.
Coinbase’s Upcoming Court Date
Coinbase’s next court date is scheduled for January 17, 2024, where the court will hear Coinbase’s motion for judgment in its legal battle against the SEC. This follows the SEC’s denial of Coinbase’s crypto rulemaking request and Coinbase’s subsequent petition for court review. XRP is currently trading at $0.55818.
Hot Take: SEC’s Conduct Under Scrutiny
The recent criticism by John Deaton highlights growing concerns about the conduct of the SEC in relation to cryptocurrencies. Deaton, a former federal prosecutor, argues that SEC lawyers have lost sight of their duty to uphold justice and adhere to the law. This raises questions about the consistency and fairness of the SEC’s actions, not only in the Ripple case but in other legal battles as well. As Coinbase prepares for its upcoming court date, it remains to be seen how these criticisms will impact the outcome of their legal battle against the SEC.
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