- Ripple CTO, David Schwartz, responds to the ruling in Coinbase v SEC.
- Paul Grewal, Coinbase’s Chief Legal Officer, announces development on the case via Twitter.
- Crypto Community awaits SEC report due in 120 days.
Coinbase v SEC
The month of April witnessed the lawsuit between the Securities Exchange Commission and Coinbase, a famous crypto exchange platform. Coinbase was sued by the SEC for trading unregistered securities without proper registration.
Simultaneously, Binance US was also engaged in a lawsuit with the SEC for market manipulation. These two famous crypto exchange lawsuits have led to different market sentiments. Some view the actions of the SEC as an aggressive intent to crack down on the industry. Others view it as necessary to remove bad actors in the space.
The update on the lawsuit further supports the opinion of the SEC being aggressive in the crypto industry. Coinbase slammed the United States securities regulator for dodging the questions asked in the Court of Appeal during the lawsuit.
“When ordered by this Court to address the stark inconsistency between its litigating position and its actions and statements elsewhere, the SEC still offers no straight answers and instead repeats its talking points,” Coinbase’s letter stated.
A Ruling Update on the Lawsuit between SEC V Coinbase
In a tweet made on the 20th of June, the Chief Legal Officer of Coinbase, Paul Grewal, announced an update on the ongoing legal battle. According to his tweet, Third Circuit Judge Cherry Ann Krause ruled that the court would retain jurisdiction of the case. He further commented that the SEC is accountable under the law, and a report is due in 120 days. The Judge ordered the SEC to update the court on their process of getting a staff recommendation in 120 days.
The ruling was made in response to the SEC’s inaction to the appeal made by Coinbase.
The crypto industry widely celebrated this ruling.
In response to Paul Grewal’s tweets, Ripple CTO, David Schwartz, described the Coinbase situation as a rollercoaster. He also shared his displeasure at the court for granting four months to SEC to provide an update.
“But then let the SEC get away with taking four months just to update the court on their progress towards getting a staff recommendation.”
However, he still interpreted the ruling as a victory because no one expected Coinbase to get relief. David Schwartz further shares his enthusiasm by stating that,
“...the most positive spin I can put on it is that the fact that Coinbase was successful in getting any relief at all is likely an indication that at least some of our frustration with the SEC is shared by at least one more Federal judge, and maybe lots more Federal judges.”
In conclusion, the crypto industry celebrates this win with Coinbase and eagerly awaits the report due in 120 days. The court ruling has led to a positive sentiment in the industry. Further updates on the case may lead to regulatory clarity in the crypto space.
