SEC Not Ready For Coinbase Lawsuit, Explains XRP Lawyer

The U.S. Securities and Exchange Commission (SEC) has launched multiple investigations over Coinbase. However, the XRP lawyer stated the Commission is using the Wahi case to justify that 9 crypto assets listed on the exchange are securities.

SEC lawyers Scoffed?

John Deaton, XRP holders’ lawyer in crucial SEC vs Ripple lawsuit in a Twitter thread said that the commission has learned a lot from Ripple’s legal team. The SEC alleges that today’s trading XRP is a “security”.

He mentioned that he argued that Coinbase and Kraken should have delisted XRP token. They should have filed a motion to intervene instead. However, the court might have not granted the motion but still, it would have allowed the amicus status.

Deaton highlighted that Career security lawyers and others scoffed about it. They claimed that it would be stupid to highlight them by alienation the SEC. Meanwhile, he added that the complaint used fraud like language.

However, Coinbase went for the safe option and delisted XRP from their platform. XRP’s lawyer stated that the SEC chair informed the exchange that it wouldn’t meet them. While it would sue them if it move forward with the lending product.

Watchdog to sue Coinbase?

Deaton informed that lawyers scoffed again while Coinbase backed down again. He suggested that Gensler is likely to sue Coinbase this year.

Meanwhile, he asked the question that why SEC didn’t sue Coinbase for listing the same 9 alleged securities while it sued Wahi. He stated that Gensler and SEC are not ready as they are building the case behind the scenes.

XRP lawyer called the Wahi case a classic subterfuge. If the alleged 9 tokens are illegal securities as the Commission claims. In this way, the exchange is hurting investors who are buying these tokens.

As Wahi can’t defend the case like the way Coinbase legal team could. While Gensler will use the criminal wire fraud case as leverage against Wahi to settle it.