Coinbase has launched a counteroffensive against the Securities and Exchange Commission (SEC), questioning its authority and stirring echoes of a previous clash between the SEC and Ripple.
Coinbase’s Gambit
Paul Grewal, representing Coinbase, took to social media today to disclose the company’s strategy in its ongoing legal tussle with the SEC. In a series of tweets, Grewal asserted that Coinbase’s offerings do not fall under the purview of “investment contracts”, as understood through years of judicial rulings.
He further contends that the SEC’s actions, by side-stepping decades of binding legal precedent, overstep the limits set by Congress and defy its earlier interpretations of securities laws. The core of their argument hinges on the due process and the proper use of discretion.
Also Read – Coinbase Challenges SEC’s Claims Over 12 Tokens; John Deaton Defends Asset Sales
A Ripple in the Pond
Coinbase’s legal manoeuvres are not being viewed in isolation. Ashley Prosper, a staunch supporter of XRP, pointed out that the Ripple case features prominently in Coinbase’s arguments. The outcome here could have significant implications for the crypto landscape, with Judge Torres’ earlier rulings in the Ripple case hanging in the balance.
#XRP #XRPCommunity
Coinbase has filed its motion to dismiss the SEC’s case against it. In their brief, they cite the Ripple case numerous times. What’s going to be interesting to see is whether or not this court accepts Judge Torres’ ruling. If it does not, that truly creates a… https://t.co/JHRcLpAYke
— Ashley PROSPER (@AshleyPROSPER1) August 4, 2023
Should the court reject Torres’ previous decisions, it would carve out a unique legal niche for XRP. Prosper further speculated that even in such a scenario, the SEC might avoid appealing the Ripple verdict. The risk of escalating the matter to higher courts, like the 2nd circuit and potentially the Supreme Court, may deter the SEC, especially if other judges lean in its favour.
Awaiting the Court’s Verdict
As the crypto community watches with bated breath, Grewal and Coinbase express their gratitude for the court’s meticulous scrutiny of the case. The outcome here is not just about one company’s battle against a regulator. It might very well set a precedent, echoing what many refer to as “The Ripple Test.”
Also Read – Ripple (XRP) News: SEC Officials Ignored XRP’s Security Status Talks, Focused on Ripple’s Tech Instead
Qadir AK
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
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