In a recent turn of events, the United States Securities and Exchange Commission (SEC) has raised objections to Coinbase’s proposed restructuring plan pertaining to the reimbursement of investors affected by the bankruptcy of crypto lender Celsius. Pro-XRP lawyer John E. Deaton has expressed his astonishment at the SEC’s decision, emphasizing that the regulator has increasingly become a significant threat to retail investors.

SEC’s Concerns Regarding Coinbase’s Restructuring Plan:
Coinbase presented a plan to the SEC aimed at providing reimbursement to investors affected by the bankruptcy of Celsius, a crypto firm. However, the SEC voiced concerns regarding this plan, fearing that it may facilitate the provision of brokerage services within the crypto market. It is worth noting that the SEC’s decision might have been influenced by the lawsuit it filed against Coinbase in June 2023.

John E. Deaton’s Displeasure with the SEC’s Decision:
Pro-XRP lawyer John E. Deaton, known for his outspoken views on the SEC’s stance towards the cryptocurrency sector, expressed his criticism of the regulator’s decision concerning Coinbase’s involvement in the Celsius reimbursement plan. Using social media as his platform, Deaton highlighted the growing concerns about the SEC’s actions and labeled it the biggest threat to retail investors.

SEC’s Lawsuit Against Coinbase:
Back in June 2023, the SEC filed a lawsuit against Coinbase, alleging that the crypto giant violated federal laws. The regulator accused Coinbase of engaging in an unregistered offer and sale of securities related to its Staking as a Service Program and serving as an unregistered exchange, broker, and clearing agency. The SEC claimed that Coinbase had unlawfully generated billions of dollars since 2019 through these activities.

Coinbase’s Defense and Request for Case Dismissal:
In response to the SEC’s lawsuit, Coinbase filed a motion for case dismissal, arguing that the regulator had overstepped its jurisdiction by suing the crypto exchange. Coinbase stated that its transactions primarily involved commodity sales rather than contractual obligations reflecting the income, profits, or assets of a business. The crypto exchange substantiated its defense with evidence and demanded that the SEC’s decisions be declared invalid.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.