John E Deaton – an American attorney representing thousands of XRP investors in the lawsuit against the US Securities and Exchange Commission (SEC) – chipped in about another legal battle the regulator leads: the one with the cryptocurrency exchange Coinbase.
believes that the marketplace has “a real shot” with its motion to dismiss (MTD) the case, evaluating its chance to secure a victory at the District Court level at “better than 50%.” Moreover, Deaton thinks the odds for a COINBASE win at the 2nd Circuit level and the Supreme Court level are even better:
“I have the odds for a Coinbase victory at the District Court level, better than 50%, and at the 2nd Circuit level, better than 60%, and at the Supreme Court level, better than 80%. Gary Gensler and the SECGov’s days of unconstitutionally expanding Howey, are limited.”
Recall that the agency Coinbase at the beginning of June, accusing it of breaching several laws and offering trading services with alleged unregistered securities. Prior to that, it filed a lawsuit against another behemoth in the cryptocurrency industry – Binance.
The SEC vs. Ripple
Arguably, the most famous lawsuit that the SEC is involved in is the one against Ripple. The legal battle started in December 2020 when the Commission maintained that the blockchain enterprise sold XRP tokens worth billions of dollars as an unregistered security offering.
The dispute passed through multiple phases in the following years, with both organizations firing shots at each other. The culmination occurred in mid-July when a US Federal Judge ruled that Ripple’s programmatic XRP sales did not constitute an offer of investment contracts.
The crypto company its second partial win at the beginning of October when the magistrates dismissed the SEC’s wish to appeal the initial decision and a third one when CEO Brad Garlinghouse and Executive Chairman Chris Larsen were cleared of all claims brought by the regulator.
The grand trial for April next year should determine the outcome of the lengthy battle between the entities.
