- CryptoLaw founder and XRP holders’ attorney, John Deaton, reports that 2,331 Coinbase customers have indicated their interest to potentially join as amici curiae in the SEC vs Coinbase lawsuit.
- Coinbase has lodged its initial legal defense against the SEC’s claims, arguing that cryptocurrency assets traded on its platform are not “investment contracts” and, therefore, are not securities.
In the ongoing legal clash between the Securities and Exchange Commission (SEC) and Coinbase, a noteworthy development has occurred. John Deaton, the founder of CryptoLaw and the attorney representing XRP holders, has shared that 2,331 Coinbase customers have expressed their desire to possibly join the lawsuit as amici curiae, also known as “friends of the court.”
The Significance of Community Participation
The significance of this move, Deaton explains, lies in the empowerment of the community.
“It’s about speaking up for ourselves and not letting the SEC or Coinbase speak for us,”
he stated. This sentiment arose after the SEC launched its lawsuit against Coinbase in June. Deaton swiftly communicated his interest in participating, remarking,
“Some of us just don’t want the SEC gaslighting the Court that it’s protecting us.”
To facilitate the engagement of the cryptocurrency community, Deaton provided an online form, aiming to form a putative class of customers and crypto account holders who use the Binance and Coinbase platforms. His strategy implies that if sufficient interest is shown, a request for participation might be lodged, potentially granting amicus status to ensure users’ voices are represented in court.
Coinbase’s Stance
In a recent development, Coinbase has submitted its preliminary defense and announced its intention to file a motion to dismiss the SEC’s complaint. The cryptocurrency exchange argues in its response that the SEC lacks jurisdiction over civil claims since the crypto assets transacted on its platform are not “investment contracts” and thus do not qualify as securities.
Coinbase’s initial legal defense will receive a response from the SEC on July 13, as per a recent court directive. This date represents a significant advancement from the original deadline of August 7, due to a defense tactic employed by Coinbase. Additionally, the court adjusted the pretrial conference to a pre-motion conference and rescheduled it from August 24 to July 13 at 2:00 p.m. UT.
