SEC Faces Criticism in Coinbase Lawsuit as Ripple CLO Weighs In – Coinpedia Fintech News
The Securities and Exchange Commission (SEC) has delivered its opposition against Coinbase’s motion to dismiss its ongoing legal case. While Paul Grewal, the Chief Legal Officer of Coinbase, has been vocally critical of the SEC’s approach, the new insights from Ripple Labs CLO Stuart Alderoty add more weight to ripping the flaws in the latest brief from the SEC in the Coinbase lawsuit.
Stuart Alderoty heavily crushed the Securities and Exchange Commission’s (SEC) latest opposition in the ongoing legal case against Coinbase. Alderoty pointed out substantial inconsistencies in the SEC’s argument, particularly their claim that digital assets lack inherent value compared to collectible baseball cards. This assertion was made without supporting evidence, raising questions about the SEC’s reasoning.
Notably, Republican Senator Cynthia Lummis filed an Amicus Brief urging the Judge to dismiss the case against Coinbase. This shows significant political backing for the exchange.
Alderoty Rebuffs Gensler’s Approach
Alderoty is among several legal experts in the crypto space who have been critical of SEC Chairman Gary Gensler’s regulatory tactics. Gensler’s approach to crypto regulation has faced scrutiny, with advocates for the industry emphasizing the need for a more nuanced classification of cryptocurrencies that don’t fit the traditional investment contract mold.
Ripple’s XRP can be a Landmark for Others.
Ripple Labs recently achieved a significant milestone by securing a declaration from Judge Analisa Torres that XRP is not a security. This precedent-setting decision holds implications for the broader crypto industry. This ruling gains further credibility with the denial of the SEC’s motion for an Interlocutory Appeal. Coinbase and other crypto firms can leverage this precedent to challenge the SEC’s classification of certain assets, such as Cardano, Solana, and Polygon, as investment contracts.
Crypto Ecosystem Gaining Full-on-Traction
The crypto industry has seen a series of victories against the SEC, signaling a shift in the regulatory landscape. If the SEC maintains its current stance, further defeats for the regulatory body may be on the horizon. This evolving dynamic underscores the need for regulatory clarity that aligns with the unique attributes of digital assets, paving the way for innovation in the crypto space. The only hope is ETF approvals, as it will solve many regulatory hurdles and make a good market movement after a dull period.
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