XRP holder's lawyer John Deaton has criticized US Securities and Exchange Commission (SEC) lawyers over the Bitcoin (BTC) statement made at last week's hearing ongoing lawsuit against Coinbase Global Inc.
The SEC’s Misunderstanding About Bitcoin (BTC)
Although Bitcoin (BTC) is not the main point of contention in the lawsuit, SEC lawyers have drawn an analogy to the coin's security status. As noted crypto lawyer MetaLawMan pointed out, SEC lawyers said that Bitcoin (BTC) cannot be classified as a security because it does not have an ecosystem around it.
This is typically one of the key premises of the market regulator in the fight against crypto companies over the security status of digital currencies. The regulator assumes that the presence of an entity, development team or DAO, which can be easily specified, represents a common interest in charge of investors' funds.
A major flaw in this analogy is that cryptosystems are generally decentralized, as are a given coin's on-chain operations. While most blockchain-based companies have a development team, they typically work based on the general interests of the members of their community, rather than the other way around.
John Deaton criticized the SEC's reasoning in this regard. MetaLawMan ironically pointed out the huge community behind Bitcoin (BTC), which is reflected in the hashrate, which has risen to a new all-time high (ATH) of 500 exahashes.
Reaching this milestone is no easy task considering that many computers around the world are connected to the network in a decentralized and autonomous manner to maintain the integrity of the Bitcoin network.
The SEC's Relentless Battle
The market regulator stuck to its misconception about Bitcoin (BTC), despite the series of conversations in its previous legal battles related to coins within the digital currency ecosystem.
The The SEC sued Ripple Labs Inc in December 2020 and just last July, Judge Analisa Torres ruled declared in their historic verdict that XRP itself is not a security. The premise of this ruling is based on Ripple's lawyers' argument that XRP is a piece of code with a simple undertone for payment utilities.
Instead of learning from this, the market regulator continued its lawsuit against Coinbase and Binance and also declared other assets such as Cardano (ADA), Solana (SOL) and Polygon (MATIC) as securities.
With his Coinbase fight, it's analysts We predict a 70% chance of winning for crypto exchanges.
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