John Deaton, a well-known crypto attorney and advocate for Ripple, has announced his support for the lawsuit filed by Coinbase Global Inc against the United States Securities and Exchange Commission (SEC).
Deaton has been vocal about his stance on the SEC’s case against Ripple, and he believes that Coinbase’s lawsuit is on solid legal grounds.
Deaton responded to a tweet by Paul Grewal, the Chief Legal Officer at Coinbase, where Grewal discussed the lawsuit and the company’s reasons for filing it.
In his response, Deaton stated that the filing was the second Writ of Mandamus involving Crypto, and he supported it because he had previously filed Crypto’s first Writ of Mandamus.
Deaton explained that he had sued the SEC, asking a judge to order them to do their job and amend the Ripple complaint to only include direct sales by Ripple.
He argued that the SEC lawyers lacked the good faith required to argue that secondary market sales of XRP were also securities. He also pointed out that the SEC could not cite one case in 76 years since Howey was decided that suggested otherwise.
While Deaton’s Writ of Mandamus ultimately failed due to the separation of powers, he believes that it was more strategic than legal. He was forcing the SEC to respond and act, knowing that when they did, they would make mistakes. This strategy ultimately helped Ripple become an Amicus and exclude an expert, among other things.
Deaton Predicts A Win for Coinbase, Believes SEC Is On Losing Side With Ripple
Deaton has read the Coinbase Writ of Mandamus and believes that it is on solid legal grounds. He predicts a win for Coinbase, just like he predicted that Grayscale would win regarding a Bitcoin spot ETF.
He researched Mandamus Writs 2 1/2 years ago and believes that the crypto industry will ultimately win in court. The SEC does not have the law on its side, and the facts created by the SEC over the last six years put them on the losing side.
Nevertheless, Deaton’s support for Coinbase’s lawsuit against the SEC adds another voice to the growing number of critics who believe that the SEC has overreached in its actions against the crypto industry.
With legal experts like Deaton on their side, Coinbase may have a good chance of winning this lawsuit and setting an important precedent for the entire industry.
However, it remains to be seen how the lawsuit will play out, but Deaton’s support for Coinbase’s case adds to the growing number of voices speaking out against the SEC’s stance on crypto regulation.
Related Reading | New Google Authenticator Update Puts Your Bitcoin At Risk