Prominent XRP Lawyer Deaton Seeks Amicus Role in Coinbase v. SEC Clash

Attorney John Deaton has submitted a request to represent 4,701 Coinbase customers in the Coinbase vs. SEC case. Deaton seeks to provide amici counsel, arguing the need for clarity in classifying digital assets as investment contracts. He highlights Coinbase's strategic alignment with the SEC's argument in the Ripple case, urging the Second Circuit to resolve ambiguities in regulations.

Prominent XRP Attorney Deaton Seeks Amicus Counsel Role in Coinbase-SEC Legal Battle

New York, NY - John Deaton, the esteemed legal counsel advocating for XRP holders, has filed a motion to serve as amici counsel representing a substantial group of Coinbase customers embroiled in the ongoing legal confrontation between the cryptocurrency exchange and the Securities and Exchange Commission (SEC). Deaton's intervention emerges as Coinbase endeavors to secure legal clarity regarding the classification of digital assets, particularly cryptocurrencies, as investment contracts in the absence of an underlying contractual agreement.

In an exclusive interview with Fox Business Network journalist Eleanor Terrett, Deaton meticulously analyzed the complexities surrounding Coinbase's appeal in light of the SEC's ongoing case. "The crux of the matter lies in the SEC's failure to adequately provide guidance in the digital asset space, thereby creating legal uncertainty," Deaton remarked. He further emphasized the paramount importance of the SEC establishing clear regulatory parameters for the cryptocurrency sector.

Coinbase's Strategic Maneuver

The discussion also explored Coinbase's strategic maneuvering in seeking legal clarity. Deaton commended Coinbase's decision to adopt a strategy similar to the SEC's approach in the ongoing Ripple case. "Coinbase essentially concurred with the SEC's position," Deaton noted.

"In the Ripple case, the SEC argued that the Second Circuit should clarify the legal ambiguity," he elaborated. "However, Judge Torres declined to adjudicate the matter, setting the stage for the current situation."

Coinbase is now leveraging this precedent, contending that the Second Circuit has a responsibility to resolve the regulatory uncertainties. "Coinbase is asserting that the Second Circuit must address these ambiguities, and the SEC should support this position since they espoused the same argument in the Ripple case," Deaton explained. This strategic move, according to Deaton, effectively "boxes in" the SEC, narrowing their options and potentially swaying the court's eventual decision.

Guarded Optimism on Appeal's Outcome

Despite acknowledging the inherent uncertainties of the legal process, Deaton expressed cautious optimism regarding the prospects of Coinbase's appeal. "The chances of success are arguably 50/50," he admitted, highlighting the significant stakes involved, as individuals' financial well-being hangs in the balance.

"The legal battle between Coinbase and the SEC has far-reaching implications for the entire cryptocurrency industry," Deaton concluded. "The outcome of this case will shape the regulatory landscape for digital assets and determine the rights of cryptocurrency holders."

The legal proceedings between Coinbase and the SEC are expected to continue unfolding in the coming months, with the Second Circuit's decision likely to have a profound impact on the future of cryptocurrency regulation in the United States.