John Deaton’s Bold Prediction: Coinbase Has a 50% Chance of Beating SEC

John Deaton, an attorney and the Founder of Cryptolaw US, has sparked a buzz on social media with his recent tweet about Coinbase’s ongoing legal dispute with the U.S. Securities and Exchange Commission (SEC). This development follows significant events in another SEC-related cryptocurrency lawsuit involving Ripple and its native token, XRP.

What did he say and why is it such a huge deal? Let’s find out together – read on!

Coinbase Has Good Odds!

In a tweet thread, John Deaton didn’t shy away from putting percentages to his predictions, elevating the odds for a Coinbase victory from an “extraordinarily high” 40% to an even more promising 50%, after reading SEC’s opposition. According to Deaton, the SEC’s opposition to Coinbase’s Motion to Dismiss “is lacking in the most important area of all: the law.”

His viewpoint gains extra weight, considering his past predictions on the Ripple vs. SEC saga, where he was spot-on regarding critical aspects of the case. He said SEC would be denied for interlocutory appeal, and that’s exactly what happened!

Was Ripple’s Case the Turning Point for the Industry?

While Deaton’s main focus was on Coinbase’s upcoming battle, he also took the opportunity to reflect on the recent developments in the Ripple lawsuit. The SEC suffered a setback when Judge Analisa Torres denied their motion to appeal a previous loss. 

The Ripple case set significant precedents, especially concerning applying the Howey Test to digital assets. Judge Torres ruled that the Howey Test was irrelevant in the Ripple lawsuit, posing further questions about its applicability in future crypto cases. This significantly boosts the morale and practical chances of any other exchanges involved in a brawl with the SEC.

Coinbase’s Stance

Paul Grewal, Coinbase’s Chief Legal Officer, highlighted that the SEC’s “regulation by enforcement” approach doesn’t consider the demands and expectations of the 52-million-strong crypto community in the U.S. Last week, over 40 crypto companies rallied in Washington D.C. to call for legislation that “protects consumers, enables innovation, and creates jobs and opportunities in the US.”

Coinbase is scheduled to submit its response on October 24, marking a critical milestone in their legal battle. While John Deaton’s predictions provide a glimmer of hope, certainty remains elusive. The broader cryptocurrency community will be closely monitoring the situation, fully aware that the outcome will significantly impact Coinbase and establish a precedent for future cryptocurrency regulations.

One thing is clear: the fight for sensible crypto regulation is heating up, and the SEC is finding itself increasingly under scrutiny. Will the current situation change? Well, we’ll leave that up to time to answer.