John Deaton, a prominent pro-XRP lawyer, shared his belief that the U.S. Securities and Exchange Commission (SEC) is about to face its biggest defeat yet. He believes this defeat will come in the current legal battle between the SEC and Coinbase.
Deaton’s comments were a reply to a post from Coinbase’s Chief Legal Officer, Paul Grewal, who expressed frustration with the SEC’s recent filing. Grewal emphasized that the SEC’s opposition resembled more of the same and encouraged others to examine it closely.
Before the SEC filed its opposition to Coinbase’s Motion to Dismiss, I placed the odds of Coinbase winning at 40% – an extraordinarily high percentage for victory on a Motion to Dismiss. Normally, the odds would be no higher than 10%. After reading the SEC Opposition, the odds… https://t.co/3iTc6uD1lT
— John E Deaton (@JohnEDeaton1) October 4, 2023
Read Also: XRP Lawsuit: John Deaton Predicts Judge Torres’s Decision on SEC Interlocutory Appeal
Grewal criticized the SEC’s lack of legal citations and challenged their claims by arguing that the assets listed on Coinbase’s platform fall outside the SEC’s jurisdiction. He highlighted recent court decisions supporting the notion that assets like those on Coinbase were not securities.
In a provocative comparison, he suggested that the SEC’s arguments would classify items like Pokemon cards, stamps, and Swiftie bracelets as securities, a viewpoint not aligned with existing laws.
Coinbase’s Chance of Getting the Case Dismissed
Deaton shared his thoughts on the lawsuit’s outcome after the SEC filed its opposition against Coinbase’s motion to dismiss in a post on X. He expressed his belief that Coinbase had a substantial 50% chance of winning its motion to dismiss. He emphasized that such odds are remarkably high for a motion to dismiss, typically not exceeding 10%.
Before the SEC filed its motion, Deaton placed Coinbase’s chances of getting the case dismissed at 40%, which he described as extraordinarily high. He states, “After reading the SEC Opposition, the odds have improved in Coinbase’s favor and stands, at least, at 50%.”
This shift in opinion is primarily due to what he perceives as a deficiency in the SEC’s argument when it comes to legal aspects. In Deaton’s words, “The SEC’s Opposition is lacking in the most important area of all: the law.”
Read Also: Attorney John Deaton States Key Factor To Push XRP Price Beyond $3.84 All-Time High
Comparing this situation to his earlier predictions regarding the XRP lawsuit, Deaton recalled his confident prediction of a favorable outcome for Ripple during a live TV appearance. He also predicted that Judge Torres would deny the SEC’s request for an interlocutory appeal. Nonetheless, Deaton cautioned that the Coinbase case is more unpredictable.
He states that he does not want to psyche himself up and then get disappointed, but he believes that Judge Failla could deliver the most significant blow to the SEC.
Deaton recently shared his belief that the SEC would have to be forced to settle with Ripple. Although he states that they are not there yet, he believes they will be forced to the table to agree on a settlement.
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