US Attorney Criticizes SEC for Opposing Coinbase’s Reorganization Plan
John E. Deaton, a US attorney representing thousands of XRP investors in the Ripple-SEC lawsuit, has expressed criticism towards the agency for its recent actions. The Securities and Exchange Commission (SEC) opposed a reorganization plan proposed by Coinbase, which aimed to reimburse customers of the bankrupt Celsius Network.
The SEC Seen as a Threat to Retail Investors
Coinbase had intentions to collaborate with Celsius Network in order to distribute digital assets back to its users. However, the SEC raised concerns about Coinbase providing brokerage services as part of the restructuring plan. The SEC previously filed a lawsuit against Coinbase, accusing it of violating laws and offering trading services with unregistered securities.
John Deaton, baffled by the SEC’s decision to halt the collaboration, stated that the regulator has become the “single greatest consistent threat to retail investors.”
My God, every time I start thinking the SEC can’t possibly do more to fail as an institution, it proves me naive. The SEC has become the single greatest consistent threat to retail investors.
— John E Deaton (@JohnEDeaton1) September 25, 2023
SEC’s History of Harming Crypto
This is not the first time Deaton has criticized the SEC for its hostile stance on cryptocurrencies. He previously claimed that the SEC’s lawsuit against Ripple had damaged the blockchain enterprise and negatively impacted XRP adoption.
In July, Ripple won a partial court victory in its legal battle against the SEC, resulting in a significant price increase for XRP and increased enthusiasm within the crypto community. However, the SEC has formally appealed the ruling, and the outcome of the case remains uncertain.
Hot Take: SEC’s Actions Raise Concerns for Crypto Investors
The SEC’s opposition to Coinbase’s reorganization plan and its ongoing legal battles with Ripple have raised concerns among crypto investors. The regulator’s actions are seen as detrimental to the industry and pose a threat to retail investors. The outcome of these cases will have significant implications for the future of cryptocurrencies and their adoption. It remains to be seen how the SEC’s decisions will impact the market and whether they will be met with further criticism from industry participants.
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