XRP Holder’s Lawyer Slams SEC Lawyers Over Bitcoin (BTC) Statement
XRP holder’s lawyer John Deaton has come out to slam the lawyers representing the United States Securities and Exchange Commission (SEC) over the Bitcoin (BTC) statement made during the past week’s hearing in the ongoing Coinbase Global Inc. lawsuit.
The SEC’s Misconception About Bitcoin (BTC)
While Bitcoin (BTC) is not the primary bone of contention in the lawsuit, the SEC lawyers made an analogy regarding the coin’s security status. As pointed out by renowned crypto lawyer MetaLawMan, the SEC attorneys said Bitcoin (BTC) cannot be tagged a security as it does not have an ecosystem around it.
This is typically one of the major premises of the market regulator in the fight against crypto firms over the security status of digital currencies. The regulator believes the presence of a body, a development team, or a DAO that can easily be pointed out forms a common interest that is in charge of investor’s funds.
One major fault in this analogy is that crypto systems are generally decentralized and so are the on-chain operations of any particular coin. While most blockchain-based firms have a development team in place, these typically function based on the overall interest of members of their community and not vice-versa.
John Deaton faulted the SEC’s argument in this regard, MetaLawMan ironically pointed out the massive community behind Bitcoin (BTC) as showcased in its hashrate that has soared to a new All-Time High (ATH) of 500 exahashes.
It was, to me, the most ridiculous thing SEC lawyers uttered at the hearing. But, then again, if there’s one thing I’ve learned about SEC lawyers, it’s that they absolutely refuse to let the truth get in their way. https://t.co/B2Aj64XY2R
— John E Deaton (@JohnEDeaton1) January 21, 2024
Attaining this milestone is no small feat, considering that many computers around the world are plugged into the network in a decentralized and autonomous manner to maintain the integrity of the Bitcoin network.
SEC’s Unrelenting Fight
The market regulator held onto its erroneous idea about Bitcoin (BTC) despite the series of conversations in its prior legal battles as it relates to coins within the digital currency ecosystem.
The SEC sued Ripple Labs Inc in December 2020 and it was not until July last year that Judge Analisa Torres declared in her historic ruling that XRP is not in itself a security. The premise of this ruling stems from the argument from Ripple’s lawyers that XRP is a piece of code with a simple payment utility undertone.
Rather than learn from this, the markets regulator pressed on with its lawsuit against Coinbase and Binance, declaring other assets like Cardano (ADA), Solana (SOL), and Polygon (MATIC) as securities as well.
With its Coinbase fight, analysts are projecting a 70% win odds for the crypto exchange.
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