Expert Predicts Partial Victory in Coinbase’s Legal Battle with the SEC

Legal expert John Deaton has shared his thoughts on the ongoing legal fight between Coinbase and the Securities and Exchange Commission (SEC) in the United States.
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Legal expert John Deaton has provided insight into the ongoing legal conflict between Coinbase and the United States Securities and Exchange Commission (SEC), suggesting that Coinbase may obtain a partial victory.

However, he believes that a total victory is doubtful, with only a 5% possibility.

Deaton’s reasoning is based on the Howey Test precedents, which state that no one has been charged in nearly eight decades for selling assets on exchanges or secondary marketplaces. Deaton sees promise in a recent ruling by Judge Analia Torres, who decided in the Ripple vs SEC Case that XRP is not a security, offering a significant assist to Coinbase’s argument.

Deaton also says that Coinbase’s defense approach against the SEC has been astute, which may result in some claims being dismissed when reviewed independently. However, he does not anticipate Coinbase escaping the staking-related portions of the litigation, implying that these will remain a point of contention.

Coinbase responded in early August by filing a motion to have the SEC’s case against them dropped. The exchange charged the SEC with violating due process and departing from previous interpretations of securities law.

The SEC has overreached its power by attempting to define asset sales as securities, according to Coinbase’s Chief Legal Officer Paul Grewal, using the XRP litigation as an example.

In response, the SEC opposed Coinbase’s motion to dismiss the proceedings, which Ripple’s General Counsel Stuart Alderoty saw as unfounded. Deaton, on the other hand, stated that if the request is granted, the SEC may succeed, setting the stage for a potential split judgment.

In the event of a split decision, Deaton believes Coinbase will come out on top in terms of token asset sales. While a total victory is improbable, Coinbase’s strategic defense and the recent Ripple case ruling have provided a ray of hope in an otherwise difficult legal landscape.

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