Lawyer Explains How XRP Could’ve Stayed On Coinbase• August 28, 2022 7:05 pm • Comments
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.
Ripple Lawsuit: How XRP Could Have Stayed on Coinbase, Lawyer Explains https://t.co/GmFNbjT6HN
— 🇳🇱 MACKATTACK XRP 🇳🇱 (@MackAttackXRP) August 28, 2022
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.
"The SEC approved @Coinbase going public even though Coinbase is not a registered broker dealer."
– Brad Garlinghouse, CEO @Ripple#fintech $xrp
— XRP_Cro (@stedas) August 28, 2022
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.
Hey @Coinbase, it’s about time to relist $XRP
— DustyBC Crypto (@TheDustyBC) August 26, 2022
Join the conversation!
We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.