Lawyer Explains How XRP Could’ve Stayed On Coinbase

August 28, 2022 7:05 pm

Attorney John Deaton recently spoke up about the delisting of the XRP token from the Coinbase exchange back when the SEC had first accused the asset of being a security.

Essentially, Deaton shared that Coinbase actually had the option to opt out of having to delist XRP back when the SEC made the request.

Instead, it could’ve rejected the SEC request and file a motion to intervene against the claim.

However, there was a fear of standing out by fighting against the regulator as pressure could’ve been put on the exchange that would prohibit it from providing various services.

U.today reports:

What prompted Deaton to speak out was the news that the U.S. Securities and Exchange Commission has changed its strategy and plans to leverage the Wahi complaint, named after a former Coinbase manager accused of insider trading, to ease its work.

According to the lawyer, the SEC is doing this in order to avoid meeting with Coinbase’s legal team, having learned from meeting with the Ripple team. When the SEC sued Ripple claiming today’s #XRP a security, I argued that Coinbase / Kraken should not delist #XRP but instead file a motion to intervene.

The judge may not have granted it but would’ve have certainly granted amicus status like she did #XRPHolders. — John E Deaton (213K Followers Beware Imposters) (@JohnEDeaton1) August 28, 2022

Deaton shares that Coinbase will probably continue to get additional pressure from the SEC as it attempts to further regulate the crypto market and all crypto related businesses.

To do this, Deaton predicts that the SEC will look for evidence against Coinbase by using the Wahi case which focuses on a Coinbase manager that was accused of insider trading.

This is why the result of the XRP vs SEC lawsuit will be a key indicator for how regulation moves forward as that will likely dictate more trouble for Coinbase.

AMBCrypto conludes:

Filed in July, the Wahi complaint adds insider trading allegations against 2 Coinbase employees. It also argues that 9 other cryptocurrencies are securities. This aggressive push by the SEC may spell more problems for the crypto-market if the SEC wins the case.

Such an outcome will also push Ripple into an uncertain territory since its services will likely not be available in the U.S if it moves to a different country.

An unfavourable outcome for Ripple might throw a wrench into its ODL operations, especially since the U.S is one the biggest finance markets in the globe.

If U.S banks will not be on-board with ODL plans, then that might weaken the potential for the adoption of Ripple’s CBDC infrastructure.

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