Well-known cryptocurrency lawyer John Deaton has revealed that he supports Coinbase’s filing with the U.S. Securities and Exchange Commission (SEC). While it’s not a very common move, Deaton is particularly pleased that Coinbase is “courageously” following in his footsteps.
Why Attorney John Deaton Is Backing Coinbase’s SEC Suit
Deaton said he is the first person in the history of the U.S. crypto ecosystem to file such a lawsuit on behalf of XRP.
My SEC attorney lacked the sincerity needed to argue a secondary market sale #Ripple – Offered entirely independently of Ripple – are also securities. The SEC has not been able to cite a single case in 76 years since the Howey ruling showed otherwise.
— John E. Deaton (@JohnEDeaton1) April 25, 2023
According to him, his action is aimed at asking the SEC to amend its claims against Ripple by limiting its focus on the company’s sale of XRP tokens. The SEC says XRP was sold as a security, and the lawsuit has been ongoing for the past few years.
While Deaton didn’t focus on the key facts of the Coinbase lawsuit, he found it more interesting that more industry groups came out against the SEC, demanding better regulation. Even Deaton said the SEC could not continue to defend itself forever with the Howey test, which was formed more than seven years ago.
More than 13,000 NFT miners honor cryptocurrency with Coinbase
Elsewhere, Coinbase launched its “Stand With Crypto” commemorative NFT token following a lawsuit against the SEC.according to information On its website, the NFT symbolizes the solidarity of the crypto community in seeking clear and reasonable policies.
This NFT features a blue shield, representing an overall stance to protect and promote the potential of cryptocurrencies.
“A blue shield not only shows your support for the cause, but also shows that you are part of a growing community that believes in the future of cryptocurrencies.”
At the same time, the team clarified that the NFT is “entirely for celebration” and “has no intended utility or value.” According to the website, all proceeds related to the NFT collection will be donated to the vetted organization through a Gitcoin cryptocurrency promotional round.
More than 13,000 people — including Coinbase CEO Brian Armstrong — have minted NFTs. According to OpenSea data, the total amount of the collection is 0.1793 ETH, and the reserve price is 0.003 ETH.
Earlier this year, Coinbase launched Crypto 435 — a grassroots crypto movement aimed at influencing U.S. policymaking. At the time, the exchange said it would assist crypto advocates with information on contacting local politicians and gathering data on their stance on cryptocurrencies.
Coinbase’s fight with the SEC also aims to force the financial regulator to create guidelines for companies in the crypto industry. Over the weekend, Armstrong and his staff met with the SEC and members of the U.S. Congress.
The U.S. is becoming polarized when it comes to cryptocurrency regulation. Notably, the SEC has cracked down on institutions in the region on the grounds that most tokens or services in the region are securities offerings. The cryptocurrency community and even lawmakers have criticized the commission and called for clear regulatory guidelines.
But SEC Chairman Gary Gensler asserted that current securities laws are sufficient to steer the crypto community into compliance. While the SEC has had time to prepare for the Coinbase case, the legal battle in the US is certainly heating up massively.
- Coinbase CEO Criticizes SEC for ‘Incalculable Harm’ to U.S.
- Coinbase Files Lawsuit With SEC Over Crypto Regulatory Clarity