- According to John Deaton, Coinbase could claim a massive regulatory advantage over the SEC in ongoing litigation.
- Deaton explained that the SEC backtracked on its original decision granting Coinbase an accelerated IPO.
- The lawyer believes a victory for Coinbase will be significantly detrimental to the SEC.
According to renowned crypto lawyer John Deaton, Coinbase could claim a massive regulatory advantage, depending on the outcome of its ongoing case versus the U.S. Securities and Exchange Commission (SEC). Deaton observed that during an interview with the Discover Crypto YouTube channel hosts.
The renowned lawyer explained the details of the case, noting how the SEC backtracked on its original decision granting Coinbase an accelerated IPO. He believes a victory for Coinbase will be significantly detrimental to the SEC. However, he thinks a victory for the SEC would negatively impact the entire crypto industry.
Deaton noted that the ongoing litigation is a Federal District Court case. Hence, there is the opportunity for an appeal by any of the parties, depending on the outcome. More importantly, he thinks the judgment would set a precedent that could impact the wider crypto community. He further explained that, apart from ETH, a victory for the SEC would qualify every other crypto except Bitcoin as an unregistered security.
Apart from Bitcoin and Ethereum, Deaton considers XRP to be another cryptocurrency with a unique status. According to him, last year’s judgment by the court clarified that XRP is not a security, making it the only crypto token with judicial clarity.
The crypto lawyer further explained that Ripple is still in the “penalty phase,” which remains a setback for XRP. According to him, until that process is complete, there will be reservations among investors about XRP. However, getting that out of the way could mark the reinstatement of the Ripple IPO.
Deaton believes a win for Coinbase would put the crypto exchange in a powerful position. As such, any crypto token with “Coinbase’s blessing” would automatically qualify as a legal entity based on Coinbase’s status.
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