XRP supporter and attorney John Deaton is considering the possibility that Coinbase will prevail in a lawsuit filed by the US Securities and Exchange Commission (SEC) against the US-based crypto exchange.
Speaking at the iConnections Global Alts conference, Deaton says Coinbase has a “strong” chance of getting the SEC lawsuit dismissed before it goes to trial.
The SEC filed the lawsuit in June 2023, accusing Coinbase of “acting as an unregistered securities exchange, broker and clearing agency.” The same month, Coinbase filed a motion to dismiss the SEC’s lawsuit against it.
Says Deaton,
“Right now they have a motion to dismiss, and normally at this stage I have a motion to dismiss. As a lawyer I would say you have a 5% chance at best. I put Coinbase’s near the 40% range, which is large for a motion to dismiss.”
Deaton also predicts that Coinbase will emerge victorious even if a court decides to take the lawsuit to a full trial.
‘But in the end they’re going to win. The question is, do they win at the district court level, do they win at the Second Circuit?
Everyone agrees that if it gets to the Supreme Court, the current makeup of the Supreme Court, they’re going to be asking big questions.
The point is this… One in four adults [in the US] own cryptocurrency. People in the United States want access to this asset class. And what we see now is the control factor.”
Earlier this month, hedge fund veteran Anthony Scaramucci reportedly said that Coinbase will likely prevail against the SEC at some point if the lawsuit moves through the courts.
“The Coinbase case will be a very big, instrumental case. I predict we will win that case. And besides, we could lose it here. But [Coinbase CEO] Brian Armstrong will win in the Supreme Court.”
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