Coinbase To Win Partially Against SEC: Prominent Crypto Lawyer

In a recent report, a prominent cryptocurrency lawyer, John E. Deaton, predicted that the Coinbase exchange could only have a partial victory over its accuser, the SEC, in the ongoing lawsuit between them. He added that the total chance for total victory for the crypto platform was a mere 5%. Deaton noted that Judge Torres’ ruling, which classified XRP as non-security, laid a solid foundation in the case as there are no charges over asset sales on third-party platforms.

According to the report, the famous crypto law expert shed more light on the legal battle going on between the United States Securities and Exchange Commission and the prominent American-based crypto platform Coinbase Exchange. In his speech, he highlighted that it is more feasible for Coinbase to have a partial win in the case than hoping for a total win against the SEC.

Deaton Highlights Coinbase Vs. SEC Case

In addition, he asserted that the crypto platform has a win rate of 5%. The report revealed that the veteran crypto lawyer used historical legal structures to deduce his speculations, especially given that the SEC did not level any charges against the crypto firm for sales of crypto assets on secondary markets for the past eight decades. He said this fact indicates good tides for Coinbase.

Making references to the previous court ruling on the case, he said it has an enormous impact on the current case. According to him, the initial judgment of Analisa Torres, who ruled that the native token of Coinbase, XRP, did not fit to be categorized as security, was a good standing point for Coinbase to use as a defense.

In addition, he remarked that the legal approach taken by Coinbase to tackle the lawsuit was clever as the firm strategically presented its arguments against the prosecutor by treating each allegation separately. He added that the legal segregation strategy would give Coinbase more robust support against the SEC. However, he admitted that it is seemingly implausible for the crypto firm to win the lawsuit entirely.

Both Parties Filed For Court Dismissal

Meanwhile, on several occasions, Coinbase had attempted to get rid of the lawsuit as it requested the presiding court for dismissal while claiming that the SEC had trespassed its jurisdiction of financial oversight, adding that the regulator contradicts the interpretations of its securities rules.

Furthermore, the Chief Legal Officer of Coinbase, Paul Grewal, reportedly accused the SEC of breaching the oversight restrictions set by the United States Congress, pointing out that the regulator is liable to misconstrue typical asset transactions as females of security.

In addition, Grewal used a noteworthy reference to support his assertions as he commented on the XRP lawsuit, claiming that the SEC was inclined to exceed its oversight authority limit. However, in its response to Grewal and Coinbase’s dismissal motion, the SEC motioned the court to disregard the dismissal request from the crypto platform. Nonetheless, the General Counsel of Ripple, Alderoty Stuart, considers the SEC’s move unfounded.

Crypto Community Anticipates The Case’s Outcome

Amid the intense legal counter-arguments from the two parties, John Deaton believes that the US SEC could eventually emerge the winning regarding the dismissal motion the two warring parties filed. Nonetheless, he joined that a bigger victory for Coinbase is around the corner, particularly about the asset sales, which likely came to be due to the parity among the multiple legal facets of the lawsuit.

Meanwhile, as the legal brawl between the two organizations unfolds, the lapses and the need for more growth and improvement in the cryptocurrency industry become evident. Also, the final result of the legal battle that Coinbase picked up with the SEC would have a huge and lasting impact on the industry as it sets precedents for future cases involving crypto-related operations and services.

Consequently, so much depends on the outcome as the crypto society keeps a close watch on the US regulatory watchdog and the prominent America-based crypto exchange exchange argumamts. Also, reports showed that the result of the case could determine the fate of crypto assets in the US for years.