- XRP, ADA investors may support Coinbase’s defense in the SEC lawsuit, says lawyer.
- Coinbase disputes SEC’s claim of failing to register as a securities exchange, broker, and clearing agency.
- Deaton expects numerous amici to file briefs, disputing SEC’s classification of certain digital assets as securities.
In what could be a turning point in the ongoing legal dispute between Coinbase and the Securities and Exchange Commission (SEC), crypto lawyer John E. Deaton suggests that investors of XRP, ADA, and ALGO might join forces with Coinbase in its defense. The SEC’s lawsuit accuses Coinbase of failing to register as a securities exchange, broker, and clearing agency under federal securities laws – an assertion Coinbase vehemently disputes.
The legal battle unfolds as Coinbase files a motion to dismiss the lawsuit, leveraging the Major Questions Doctrine. This legal strategy, Deaton posits, has a strong potential to sway the case. The Major Questions Doctrine is a powerful tool used in court cases when an agency is perceived to have overstepped its bounds, a situation that could well be the case here.
A unified front from XRP, ADA, ALGO investors, and Coinbase could transform the legal landscape for these digital assets. Deaton anticipates that numerous amici, friends of the court, will request permission to file an amicus brief in the case.
This is especially likely among those who dispute the SEC’s classification of XRP, ADA, ALGO, and 64 other digital assets as securities, a controversial move that continues to stoke debate within the crypto community.
Looking ahead, the Coinbase-SEC saga could set a crucial precedent in the regulatory landscape of the crypto industry. A potential victory for Coinbase, buoyed by the collective strength of XRP, ADA, and ALGO investors, could reshape the way digital assets are classified and regulated, setting a positive trajectory for these cryptocurrencies.
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