- Crypto lawyer John Deaton revises estimated likelihood of SEC lawsuit dismissal against Coinbase (NASDAQ:COIN) to 35%.
- This comes as Judge Katherine Failla’s Uniswap ruling emphasizes regulatory ambiguity.
- Previously, Coinbase filed a motion to dismiss counters SEC’s lawsuit.
Renowned crypto lawyer John Deaton has dropped his estimation of the outcome of the regulatory lawsuit against Coinbase. In a recent tweet, Deaton argued there is a 35% chance the judge overseeing the lawsuit between SEC and Coinbase will dismiss the regulator’s suit.
The lawyer came to this conclusion following Judge Katherine Failla’s dismissal of the SEC’s complaint against Uniswap. Judge Failla also oversees the suit against the U.S.-based crypto exchange, Coinbase.
Today on @scottmelker’s show I said there was a 20-25% chance Judge Faila dismisses the SEC’s complaint (or partially dismisses leaving the staking issue), ruling that Howey is inapplicable regarding secondary sales of digital assets on anExchange in blind bid/ask transactions.… https://t.co/irSz1UvSJ9— John E Deaton (@JohnEDeaton1) August 30, 2023
In the tweet, Deaton revealed that he earlier projected a 20- 25% chance. Following Failla’s ruling in favor of Uniswap, he revised his projection upward to 35%.
Notably, on August 29, the judge identified certain claims against Uniswap as lacking factual evidence. In the ruling, Failla highlighted the decentralized nature of the protocol, arguing that the issuers of the alleged scam tokens at the heart of the suit are unidentifiable. This circumstance left the plaintiffs with an identifiable injury but without an identifiable defendant.
Furthermore, the judge took the view that the SEC filed the lawsuit, hoping the court would overlook the fact that the existing crypto regulatory environment left them without viable avenues for recourse.
This implies there has yet to be a definitive categorization of certain crypto assets as commodities or securities under the current crypto regulatory landscape in the United States. As a result, the court dismissed the SEC complaint.
Meanwhile, in June, Coinbase launched a counteroffensive against the U.S. regulator. It submitted an answer to the SEC’s lawsuit by filing a motion aiming for the dismissal of the case. Paul Grewal, Coinbase’s Chief Legal Officer, conveyed the company’s belief that the allegations laid out by the SEC in the lawsuit surpass the bounds of existing legal standards and thus merit dismissal.
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