John Deaton, a Ripple (XRP) advocate and prominent crypto attorney, recently voiced his opinion regarding the recent lawsuit between Coinbase and the Securities and Exchange Commission (SEC).
Coinbase, a U.S.-based cryptocurrency exchange, is taking a unique stance in the crypto industry by filing a lawsuit against the regulator – something that has pleased Deaton, who filed his own second Writ of Mandamus against the commission. He believes Coinbase will emerge victorious in this case.
Coinbase filed a petition against the regulatory watchdog last year in July, and by law, the SEC must respond within a reasonable time. Coinbase has now announced that it has decided to take legal action against the SEC due to their lack of response to their filing. The exchange claims this is the primary reason for its decision.
Deaton filed a groundbreaking lawsuit on behalf of XRP, making it the first such case in crypto history in the US. His Writ of Mandamus sought to have the SEC amend its complaint against Ripple by only focusing on XRP coins sold by Ripple’s blockchain payments firm. This would limit the scope of their charges and enable XRP to remain in circulation.
Paul Grewal, Chief Technology Officer at Coinbase, recently published a blog post criticizing the inaction of SEC Chair Gary Gensler in failing to clarify which cryptocurrency assets are securities. In the post, Grewal noted that more clarity hindered innovation and progress within the cryptocurrency industry.
The cryptocurrency community in the United States has criticized the SEC for its lack of clear guidance on crypto asset regulation and called on the SEC to provide more precise guidelines. However, Gary Gensler has asserted that existing securities laws are sufficient guidance for the crypto community to follow.
