Attorney Deaton declares support for Coinbase’s lawsuit against the SEC.
Cryptocurrency community members have continued to throw their weight behind Coinbase following its recent lawsuit against the Securities and Exchange Commission.
As reported, Coinbase sued the SEC yesterday to force the regulator to respond to a petition for a rule specific to digital assets. The development has prompted reactions from top crypto community members, including prominent cryptocurrency attorney John Deaton.
Deaton Supports Coinbase’s Lawsuit Against SEC
In a tweet today, attorney Deaton expressed his support for Coinbase, saying that the San Francisco-based exchange is on solid legal grounds with its Writ of Mandamus against the Securities and Exchange Commission.
Deaton commended Coinbase for the Writ of Mandamus and predicted that the cryptocurrency exchange would win the suit.
“I’ve read the Coinbase Writ. It is on [point], and I’m predicting a WIN just like I predicted early on that @Grayscale would win regarding a #BTC spot ETF,” said Deaton.
Per Deaton, the cryptocurrency industry will only be victorious against the SEC through legal battles. This is because the law is not in the SEC’s favor, and the facts the agency has created in the past six years puts it on the losing end.
Deaton Says He Filed Crypto’s First Writ of Mandamus
Deaton described Coinbase’s filing as the second Writ of Mandamus involving cryptocurrency. The CryptoLaw founder claimed he filed crypto’s first Writ of Mandamus in the United States.
He disclosed that his Writ of Mandamus was aimed at getting the SEC to amend its complaint against Ripple. Deaton asked the securities regulator to limit its complaints to only Ripple’s XRP sales while excluding secondary market sales of the sixth-largest cryptocurrency.
The @coinbase filing today is the 2nd Writ of Mandamus filed involving Crypto. I ❤️ the Petition b/c I filed Crypto’s 1st Writ of Mandamus when I sued the SEC asking a judge to order the SEC to do its job and amend the @Ripple Complaint to only include direct sales by Ripple. https://t.co/9hd8ZyRhup
— John E Deaton (@JohnEDeaton1) April 25, 2023
Binance Supports Coinbase Move
Deaton seemed excited that crypto-related companies are standing up to the SEC and demanding better regulation for the industry. It is worth noting that the SEC had been cracking down on crypto companies on the ground that most offerings in the space fall under its regulatory purview.
SEC Chairman Gary Gensler echoed this view recently in a hearing before the United States House of Representatives Committee on Financial Services. Gensler’s remark attracted backlash from cryptocurrency community members, who have continued to criticize the agency for not providing clear rules for the industry.
Meanwhile, Fox Business journalist Eleanor Terrett disclosed that sources close to Binance say the world’s largest cryptocurrency exchange is highly supportive of Coinbase’s lawsuit aimed at bringing clarity to US crypto regulations.
Although Binance fully supports Coinbase’s Writ of Mandamus against the SEC, the leading crypto exchange fears its involvement in the discussion could counterproductive to its operations.
🚨NEW: A source close to @binance on whether the exchange plans to join @coinbase in suing the @SECGov.
“Company leadership is highly supportive of Coinbase and their efforts to bring reason and clarity to U.S. crypto regulations. However, the company is still dealing with the
— Eleanor Terrett (@EleanorTerrett) April 25, 2023