Attorney John Deaton, who represents around 75,000 XRP holders in the Ripple lawsuit against the U.S. Securities and Exchange Commission (SEC), is gearing up for oral arguments on behalf of individual customers on January 17, 2024, when crypto exchange Coinbase’s motion for judgment comes before the court.
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XRP Lawyer To Repeat Ripple Like Amicus Curiae In Coinbase Lawsuit?
Earlier, CoinGape reported that a federal judge approved Coinbase’s motion for oral arguments against the U.S. SEC. The exchange argues that the transactions under question do not qualify as investment contracts and that staking services do not involve the investment of money, and digital assets cannot be seen as securities. The judge has set January 17, 2024 as the date for oral arguments in New York. At the core of the exchange’s version is the claim that reasoning for digital tokens for consideration as securities are not applicable.
Following the SEC’s filing of complaint against Coinbase in June 2023, John Deaton had invited interested customers to come forward to join for an amicus curiae, seeking that their voice is heard. Over time, as many as 5,000 users joined the list for a potential amicus curiae in the lawsuit against the SEC. With the motion to dismiss scheduled for early 2024, consideration of the customers’ amicus filing also comes to the spotlight. Deaton said,
“I have about 5,000 Coinbase customers who have joined to participate as potential amici curiae – if the case were to continue, either in District Court or on appeal.”
Regulatory Gridlock
Recently, the exchange sought a legislative approach by United States lawmakers to put an end to the SEC’s overreach, which is marked by enforcement only approach. Prior to the hearing of US SEC Chair Gary Gensler before the US Senate Banking Committee in September 2023, the Coinbase management called for legislative resolution to avoid migration of digital asset innovation overseas.
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