Pro-XRP Lawyer Criticizes SEC’s Decision on Coinbase’s Connection with Celsius
A pro-XRP lawyer, John E. Deaton, has expressed his dissatisfaction with the United States Securities and Exchange Commission’s (SEC) recent decision regarding Coinbase’s involvement in the reimbursement plan for bankrupt crypto lender Celsius.
SEC Raises Concerns about Coinbase’s Restructuring Plan
Coinbase had presented a restructuring plan to the SEC, proposing to reimburse investors from Celsius for their losses. However, the SEC objected to the plan, citing concerns that it would provide brokerage services to the crypto market. The regulator’s decision may have been influenced by its lawsuit against Coinbase in June 2023.
Lawyer Highlights SEC’s Threat to Retail Investors
John E. Deaton took to Twitter to express his shock at the SEC’s decision on Coinbase’s role in the Celsius reimbursement plan. He criticized the regulator, stating that it has become the biggest threat to retail investors in the cryptocurrency sector.
SEC Files Lawsuit Against Coinbase
In June 2023, the SEC filed a lawsuit against Coinbase, accusing the crypto exchange of violating federal laws. The allegations included engaging in an unregistered offer and sale of securities and operating as an unregistered exchange, broker, and clearing agency.
Coinbase Requests Dismissal of SEC’s Case
Coinbase requested that the SEC’s case be dismissed, arguing that the regulator exceeded its jurisdiction in suing the exchange. They claimed that their transactions are commodity sales and not contractual undertakings involving future value.
SEC Given Time to Respond
The SEC has until October 3, 2023, to respond to Coinbase’s motion. The exchange provided evidence to support its arguments, and it remains to be seen how the SEC will proceed.
Hot Take: SEC’s Decision Raises Concerns for Crypto Industry
The SEC’s decision regarding Coinbase and its involvement with Celsius raises concerns about the regulatory environment for the crypto industry. Pro-XRP lawyer John E. Deaton’s criticism highlights the growing tension between regulators and retail investors. The outcome of Coinbase’s lawsuit could have significant implications for the future of cryptocurrency exchanges and their operations. It remains to be seen how the SEC will address these issues and whether there will be any changes in regulatory policies to foster a more favorable environment for crypto businesses.
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