The SEC vs. Coinbase Saga.

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So the SEC is going after Coinbase — the big crypto exchange. They say that Coinbase broke the rules by selling crypto tokens without registering them properly.

But wait a minute, isn’t Coinbase just trying to make it so regular people like me can buy and sell crypto easily?

Then there’s this guy, John Deaton. He’s a lawyer — but now he’s running for office too. He’s sticking up for Coinbase and all us little guys who use it. He filed an amicus brief or in support of Coinbase in court. He says the SEC is just playing politics and not looking out for us small-time investors.

Well, according to the SEC, Coinbase disregarded the rules that were put in place by them for trading some cryptocurrencies. But according to Coinbase, they are only providing a platform for individuals like us to invest in digital currency. Therefore, they do not see why it should be made into a big issue.

Now let’s consider the Howey Test.

This test is used to determine if something is considered an investment contract and therefore a security or not.

Securities and Exchange Commission claims that all cryptocurrencies except Bitcoin are securities because people purchase them with the expectation of making profits, but wait a minute isn’t crypto unlike stocks or bonds?

Deaton makes some good points; he thinks SEC’s argument about non-securities status of Bitcoin due to lack of an ‘ecosystem’ around it is ridiculous saying “C’mon guys – there are millions who use BTC, so why differentiate against it?”

I agree completely with what Deaton said. The SEC is only making things more complicated. I mean, they keep on changing their minds about how they should regulate digital currencies. It seems like they are playing some sort of game where we are the ones who suffer from it.

But you know what’s really cool?

Deaton doesn’t surrender easily. He utilizes his standing as a political candidate to defend our rights. He doesn’t fear going against the SEC and expressing his thoughts regarding this matter loudly and clearly. This situation reminds me of the old David and Goliath story, but in our century, where Deaton plays the role of David.

Do you remember when he helped Ripple during their legal battle against the SEC? That was amazing! They were in need, and he did not hesitate to support them which eventually turned out pretty good for both sides involved into this process. It motivates me a lot when people fight for those who cannot do it themselves.

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I also hope that Deaton’s hard work pays off again this time. Possibly the SEC will come to understand our point of view at last: we want to invest in cryptocurrency and be treated fairly, without all the chaos and court cases.

Honestly, I believe Coinbase should have the right to appeal against the SEC’s verdict. It needs to be done correctly; this is not only for Coinbase but also for anyone else who has faith in digital currency.

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