John Deaton, who represents Ripple (XRP) holders in legal matters, has shared his opinion on Coinbase’s response to the Wells Notice issued by the Securities and Exchange Commission (SEC) in March. This viewpoint carries significant weight in the ongoing legal dispute concerning Ripple’s classification as a security.
According to a post on Deaton’s official Twitter account, he commended Coinbase for displaying resolute conviction while being open to discussion and cooperation. Deaton highlighted that Coinbase’s actions demonstrated a willingness to collaborate without compromising their beliefs. This stance is crucial in the ongoing legal battle, which has far-reaching implications for Ripple and the broader cryptocurrency industry.
Coinbase received a Wells notice from the SEC, requiring the company to provide a written response justifying its actions concerning digital assets, specifically Coinbase Earn, Coinbase Prime, and Coinbase Wallet.
The response must be well-reasoned and compelling to convince the SEC not to pursue legal action against the company. Coinbase’s CEO and General Counsel have expressed their readiness to defend the company in court against any legal allegations. They have criticized the SEC for not providing clear US cryptocurrency regulation guidelines.
At a recent congressional hearing, SEC Chair Gary Gensler was asked to clarify whether cryptocurrencies should be classified as securities or commodities. However, no clear answer was given. The SEC has been ramping up its scrutiny of the cryptocurrency industry recently, and other exchanges have also received Wells notices.
Coinbase has responded to the SEC’s Wells notice by indicating its willingness to contest any legal action taken against it in court. It remains to be seen how the situation will evolve and what the SEC’s next moves will be.
Coinbase’s CEO has called on Congress to intervene in the regulatory framework of the cryptocurrency industry in the US, urging them to provide more precise guidelines to enhance transparency in the sector.