Ripple’s recent win against the United States Securities and Exchange Commission (SEC) seems to have emboldened crypto firms in the space. As more companies take on the regulator in court, a lawyer has pointed out why XRP’s ruling is important.
Ripple Case Ruling a Game-Changer for Crypto Industry
A popular Twitter handle, MetaLawMan, has emphasized the significance of US District Judge Analisa Torres’s ruling on the Ripple case when she declared that XRP should not be identified as a security when sold on secondary exchanges.
“Everybody knows Judge Torres’ decision in Ripple is important,” he stated. But the XRP case and the recent ruling extend beyond the cryptocurrency firm itself.
Judge Torres’s ruling has shone through into Coinbase’s fight with the SEC. The SEC filed a lawsuit against Coinbase, stating that the crypto exchange company violated federal security laws by providing unregistered securities to the public.
However, the exchange has taken the fight to the regulator in a counter-lawsuit, supporting its arguments with the Ripple ruling. As MetaLawMan points out, the Coinbase legal team cited the Ripple case 13 times in its motion to dismiss the SEC case.
Everybody knows Judge Torres’ decision in Ripple is important.
How important?
The Ripple decision, and proceedings in the Ripple case, are cited 13 times by @Coinbase in its motion to dismiss the SEC’s case.
The Ripple fight benefits all of crypto.
— MetaLawMan (@MetaLawMan) August 7, 2023
Legal experts and cryptocurrency analysts believe that a positive outcome of the XRP case could establish a more stable and safe environment for the crypto industry. And the ruling is now already gaining prominence in Coinbase’s case.
Industry leaders also believe that Ripple’s win in the SEC case provides more regulatory clarity and a broader acceptance of cryptocurrencies. So Ripple’s win in the court standoff with the SEC may even be a deciding factor in the case results between Coinvase and the SEC.
SEC Faces Challenges in Legal Battle with Coinbase
The legal clash between Coinbase and The US SEC has garnered a lot of attention in the crypto industry as the result of the case could have significant implications on the crypto industry.
In an intriguing turn of events, Coinbase’s recent motion to dismiss the SEC case was influenced by a statement made by SEC Chairman Gary Gensler, where the SEC boss admitted to Congress that the SEC had “no legal authority to regulate crypto exchanges.”
Currently, Coinbase has latched on its defense on the notion that if the SEC’s leader is unsure of its authority, then the commission’s efforts to control cryptocurrencies may be unjustified. And according to MetaLawMan, if the SEC continues its lawsuit against Coinbase, it would inevitably have to explain Gensler’s testimony
Following Coinbase’s filing, the court has given the SEC until October 3 to provide a detailed and reasonable explanation for Chairman Gensler’s admission.
