Pro-XRP lawyer John E. Deaton has criticized the United States Securities and Exchange Commission’s (SEC) latest decision on Coinbase’s connection with the bankrupt crypto lender Celsius.
Pro-XRP Lawyer Baffled By SEC’s Decision
Recently, Coinbase presented a restructuring plan to the SEC in which investors from the bankrupt crypto firm Celsius could be reimbursed for their losses through the reimbursement plan but the SEC expressed its objection to the plan.
The regulator raised concerns about the restructuring plan as it believes that it would produce brokerage services to the crypto market. The SEC’s decision might be influenced by the lawsuit the regulator filed against Coinbase back in June 2023.
Pro-XRP lawyer John E. Deaton was one of the people who expressed shock at the SEC’s decision on Coinbase’s role in carrying out the Celsius reimbursement plan. The lawyer took to X to express his displeasure, highlighting that the regulator has become the biggest threat to retail investors.
The post read:
My God, every time I start thinking the SECGov can’t possibly do more to fail as an institution, it proves me naive. The SEC has become the single greatest consistent threat to retail investors.
The lawyer had previously criticized the regulator for its stance on the cryptocurrency sector as he claimed that the SEC’s lawsuit filed against Ripple had negative effects on the crypto firm.
SEC’s Lawsuit Against The Crypto Giant Coinbase
The US Securities and Exchange Commission (SEC) filed a lawsuit against the crypto giant Coinbase back in June 2023, accusing the crypto exchange of violating several federal laws. These included allegedly engaging in an unregistered offer and sale of securities in connection with Staking as a Service Program, and an unregistered exchange, broker, and clearing agency.
The regulator claimed that the crypto giant has been operating under an unregistered securities offering and has made billions of dollars unlawfully since 2019.
However, the crypto exchange requested that the SEC’s case against them be dismissed as the regulator is going over its jurisdiction in suing the crypto exchange. The crypto exchange filed a motion claiming that the SEC’s decisions were invalid and that the crypto exchange does not trade securities.
“The transactions over Coinbase’s platform and Prime are not, and do not involve, contractual undertakings to deliver future value reflecting the income, profits, or assets of a business. They are commodity sales, with the obligations on both sides discharged entirely the moment the digital token is delivered in exchange for payment,” the filing read.
The crypto exchange also pointed out several pieces of evidence to buttress its points in its motion. Following this, the SEC has been given till October 3, 2023, to file a response to the crypto exchange’s motion.