The crypto exchange Coinbase is facing a lawsuit from the Securities and Exchange Commission (SEC) regarding the sale of unregistered securities. Crypto lawyer John E. Deaton believes that Coinbase customers can make a difference by voicing their objections to the SEC lawsuit.
In a recent tweet, Deaton stated that the exchange’s customers should not let the SEC or Coinbase speak for them. He pointed to the example of the SEC’s lawsuit against Ripple, where public opinion and community action helped turn the tide.
Deaton sees at least a 25% chance of token sales success for Coinbase
While Deaton believes Judge Katherine Polka Faila has a high chance of denying Coinbase’s motion to dismiss overall, he sees a 25% chance of at least partial success regarding token sales. The analysis differs for staking activities, which face longer odds.
Many experts disagree with Deaton’s optimistic view, expecting the SEC to prevail. Nevertheless, Deaton believes Coinbase users can positively impact the case by making their voices heard. He invites customers to get involved rather than sit on the sidelines.
The SEC alleges that Coinbase offered and sold security tokens without proper registration. If the SEC wins, it could have broad implications for the crypto industry. The outcome of Coinbase’s motion to dismiss will be an early indicator of how the court views the issues.