Referring to Coinbase’s Mandamus Petition, XRP attorney John Deaton recalled that the U.S. Securities and Exchange Commission (SEC) made Chair Gary Gensler’s public comments devalued. The SEC took the stance when it recently asked the Judge to deny Coinbase’s request to ask the agency to respond to a rulemaking petition. This petition was submitted by Coinbase in 2022, seeking clarity on how securities laws apply to the cryptocurrency market.
Deaton, who represents over 70,000 XRP token holders in the Ripple Vs SEC lawsuit, said the SEC is looking to wage a political war at the cost of winning legally. Overall, he explained that the Coinbase Writ was the right move. Further exploring this issue, Deaton revealed that the SEC’s warfare on cryptocurrency is fought on three separate fronts, but it has chosen to be politically right.
Recently, the XRP vs SEC lawsuit took a new direction after Judge Analisa Torres, who is overseeing the case, denied the SEC’s request to conceal the Hinman emails. Consequently, the two parties received a one-week extension for the date of revealing the documents. Deaton stated that the Coinbase writ essentially works against the SEC itself as “the more the SEC speaks, the more credibility it loses.” According to him, the SEC wants to push a political agenda and win at all costs, while disregarding justice and investor protection.
This leads to an interesting conflict within the world of cryptocurrency markets. On one hand, the SEC’s attempt to wage a political war might result in tighter regulations that could impact the future of cryptocurrencies negatively. On the other hand, the Coinbase writ and the legal battles undertaken by companies in the crypto industry potentially could lead to more transparent regulations and a better understanding of how securities laws should be applied in this new financial landscape.
In conclusion, the ongoing battle between the SEC, Coinbase, and other cryptocurrency firms highlights the intersection between politics and the legal system in shaping the future of the digital asset markets. While the SEC aims to win at any cost, the crypto industry’s efforts to contest these efforts might pave the way for more clarity and fairness in the enforcement of securities laws. The outcome of these legal skirmishes will undoubtedly have a lasting impact on the cryptocurrency markets, and thus, it’s essential for investors to keep an eye on how the situation unfolds.
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