Legal Battle Between SEC and Coinbase Sparks Industry Reactions

Pro XRP lawyer John Deaton admired Coinbase’s legal team as they filed a Motion to Dismiss (MTD) against the SEC. Representing over 5,000 Coinbase customers, Deaton acknowledged the team’s extensive preparation, predicting an outstanding performance in the ongoing legal battle against the SEC’s perceived overreach.

I’m not too proud to admit that I am super jealous of @iampaulgrewal & @brian_armstrong’s lawyer – the one on his/her feet arguing this MTD, although I am fully aware of the amount of preparation it has taken to be ready. I predict the Coinbase legal team will be outstanding.… https://t.co/to7DsdVYVm
— John E Deaton (@JohnEDeaton1) January 17, 2024

Ripple CEO Criticizes SEC Chairman Gensler

Amid the Deaton statement, Ripple CEO Brad Garlinghouse publicly criticized SEC Chairman Gary Gensler, labeling him a “political liability.” Garlinghouse questioned Gensler’s effectiveness in crypto regulation, citing delays in establishing bitcoin exchange-traded funds (ETFs) and litigation against firms. He advocated for a new SEC chair in the interest of the American people and the economy’s long-term development. The SEC did not immediately respond to CNBC’s request for comment on Garlinghouse’s remarks.

“I do think the chair of the SEC, Gary Gensler, is a political liability in the United States. And I think he’s not acting in the interests of the citizenry, he’s not acting in the interests of the long-term growth of the economy, and I don’t understand it.” https://t.co/fjqnG9xnuk
— Brad Garlinghouse (@bgarlinghouse) January 16, 2024

SEC’s Stance on ETFs

The SEC recently approved several spot bitcoin ETFs, signaling a shift in its approach. Despite this, Chairman Gensler expressed concerns about potential market manipulation, emphasizing the risks of uncontrolled trading platforms. The agency faced controversy when its Twitter account prematurely declared approval for bitcoin ETFs, which was later revealed as a fraudulent claim due to a hacking incident.

Brad Garlinghouse criticized Gensler’s consistent approach in the legal battle against cryptocurrencies, calling it an exercise in futility. He emphasized the repeated failure of Gensler’s strategy in court, suggesting a need for a different approach.

The SEC’s legal actions against major platforms, including Binance, Coinbase, and Kraken, persisted throughout the previous year. Accused of selling unregistered securities, these platforms are currently embroiled in ongoing litigation. Ripple filed a complaint against the SEC in 2020, accusing the agency of unlawful sales of XRP coins. In October, Ripple’s executives were cleared of charges on similar grounds.

The legal battle between Coinbase and the SEC draws industry attention, with key figures expressing divergent views on regulatory actions and strategies.

Source: https://blockchainreporter.net/legal-battle-between-sec-and-coinbase-sparks-industry-reactions/