Pro-XRP lawyer John Deaton has responded to a recent statement by Paul Grewal, Chief Legal Officer of Coinbase, with a sharp criticism of the US Securities and Exchange Commission. Grewal questioned the SEC’s understanding of investment contracts in connection with cryptocurrencies.
He emphasized that the term “investments” does not inherently constitute “investment contracts” and pointed out that investment contracts must entail rights to the future income, profits, or assets of an enterprise. This view aligns with the SEC’s own stance in the Edwards case presented before the Supreme Court, where the SEC described investment contracts as having the character of “debt [or] equity participation.”
### Summary:
**1. Pro-XRP Lawyer Challenges SEC Understanding:**
– Coinbase’s Chief Legal Officer, Paul Grewal, questions SEC’s understanding of investment contracts in the context of cryptocurrencies.
– Grewal emphasizes that the term “investments” doesn’t inherently imply “investment contracts” and highlights specific criteria for such contracts.
**2. John Deaton’s Critique of SEC’s Approach:**
– John Deaton, a pro-XRP lawyer and former federal prosecutor, strongly criticizes the SEC’s conduct, contrasting it with the honorable representation expected from government attorneys.
– Deaton stresses the importance of federal prosecutors being governed by the law and the pursuit of justice, expressing disapproval of the SEC’s current practices.
**3. Alleged Inconsistency and Hypocrisy in SEC Actions:**
– Deaton points out alleged inconsistency and hypocrisy in the SEC’s actions, quoting Judge Netburn’s criticism of SEC lawyers lacking faithful allegiance to the law and being more focused on winning arguments.
– The criticism extends beyond the Ripple case, encompassing various legal battles, including those involving Grayscale, Voyager Bankruptcy, and DebtBox.
**4. Call for Accountability and Firings at the SEC:**
– Deaton concludes with a call for accountability at the SEC, suggesting that firings should begin with Gary Gensler, followed by SEC Enforcement Director Tenreiro, among others.
– This call for accountability comes in the context of ongoing legal battles, including Coinbase’s upcoming court date on January 17, 2024, against the SEC.
**5. Overall Market Update:**
– The article concludes with a brief update on the XRP market, stating that XRP is trading at $0.55818 with support found at the 0.618 Fib on the 1-day chart.
**6. Coinbase’s Legal Battle and Next Court Date:**
– Mention of Coinbase’s legal battle against the SEC and its upcoming court date on January 17, 2024, following the SEC’s denial of Coinbase’s crypto rulemaking request on December 15, 2023.
*Note: The summary provides a concise overview of the key points discussed in the blog post.*