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The lawsuit between the duo of Coinbase Global Inc, the biggest crypto trading platform in the United States, and the Securities and Exchange Commission (SEC) is shaping up, with external stakeholders already defining their roles. One of these key stakeholders is pro-XRP attorney John Deaton, who has now revealed what his role will be as he gears up to represent more than 4,200 customers of the embattled exchange.
Godfrey BenjaminAccording to Deaton, contrary to general expectations, he will not be filing an amicus brief in the case. With the Aug. 11 deadline to file such a brief fast approaching, Deaton said he is choosing not to make the move because the lawsuit is focused on a "Narrow Issue of Law."
Deaton explained further, saying the argument of Coinbase hinges on the fact that based on precedent, the tokens being tagged by the SEC as securities on its platform are indeed not investment contracts. Deaton said the dismissal of the case or judgment is a matter of the law and is subject to the judge's interpretation at the end of the day.
Because the Coinbase motion is completely a matter of law and the Judge’s interpretation of the law, I don’t believe I can offer the Court the type of unique perspective (on behalf of customers/token holders) that Judge Torres referred to when granting amicus in the Ripple case.
— John E Deaton (@JohnEDeaton1) August 5, 2023
Comparison with XRP lawsuit
Deaton compared the current Coinbase tussle with that of XRP and Ripple Labs against the SEC.
The renowned lawyer noted that since the more than 75,000 XRP holders he represents may see the token in question differently than the parent company Ripple, then it becomes quite necessary to have a different perspective through an amicus brief from the perspective of holders.
This caveat is nonexistent for Coinbase users and, as such, negates such a representation. Deaton highlighted that the law is the law irrespective of whose side it favors and that filing any amicus nrief at this time might be considered an attention-seeking move by the court.
Alex Dovbnya
Dan Burgin
U.Today Editorial Team
Vladislav Sopov