Ripple CTO Calls Coinbase’s Legal Battle Against SEC a “Rollercoaster”

• The Chief Legal Officer at Coinbase has unveiled the latest developments in the legal battle with SEC.
• Ripple’s CTO has reacted to the updates and has hinted at a surprising outcome.
• The court has decided to maintain jurisdiction over Coinbase’s challenge.

In a recent series of exchanges on Twitter, Paul Grewal, the Chief Legal Officer at Coinbase, shared the latest updates regarding the legal dispute between the Securities and Exchange Commission (SEC) and the prominent U.S. cryptocurrency exchange. Following Grewal’s tweet, David Schwartz, the Chief Technology Officer (CTO) of Ripple, expressed his thoughts on the matter.

Grewal’s tweet shed light on the fact that the Third Circuit has decided to maintain jurisdiction over Coinbase’s challenge against the SEC‘s inaction concerning their plea for fundamental regulations within the crypto domain. Grewal applauded the court’s dedication to unveiling the SEC’s opaque procedures.

The Third Circuit just ruled that it will retain jurisdiction over our challenge to the SEC's inaction on our petition for basic rules for crypto. A further report is due in 120 days. We are grateful that the Court will continue to shine a bright light on an SEC process that… pic.twitter.com/wQu52UuCoU

— paulgrewal.eth (@iampaulgrewal) June 20, 2023

Responding to Grewal’s update, Schwartz characterized the situation as a “rollercoaster.” While the court compelled the SEC to provide a timeline for ruling on Coinbase’s request, it granted the regulatory body a four-month window solely to inform the court about their progress towards a staff recommendation. 

I guess 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.

— David "JoelKatz" Schwartz (@JoelKatz) June 21, 2023

Ripple CTO Celebrates Coinbase’s Progress

Nevertheless, the Ripple executive acknowledged that many initially perceived Coinbase’s legal maneuver as a mere publicity stunt, expecting no relief for the exchange. However, Schwartz took a positive stance and considered Coinbase’s achievement a victory. 

Ironically, he speculated that the fact that the exchange obtained any relief indicated that their shared frustration with the SEC resonated with at least one federal judge and possibly even more.

As Ripple’s CTO lends his support to Coinbase’s small victory, the crypto community eagerly awaits a forthcoming report due in 120 days. The outcome of this ongoing legal battle will undoubtedly contribute to regulatory clarity within the U.S. crypto industry.

On the Flipside

• The decision of the Third Circuit to maintain jurisdiction over Coinbase’s challenge does not guarantee a favorable outcome for the exchange. 
• The SEC’s ongoing legal battle with Coinbase raises concerns about the overall regulatory environment for cryptocurrency exchanges in the United States.
• The outcome of this case could set a precedent for how regulatory agencies such as the SEC handle similar disputes with other cryptocurrency exchanges.

Why This Matters

The outcome of this case will provide much-needed clarity and establish precedents that could impact how cryptocurrencies are governed and traded, affecting the broader crypto public and market participants alike.

To learn more about Ripple CEO’s concerns as the SEC battle approaches its conclusion, read here:

Ripple CEO Sounds Alarm on Bigger Fights as SEC Battle vs Lawsuit Conclusion Nears

To stay updated on the potential link between Ripple and IMF’s global CBDC platform, read here:

Is Ripple the Hidden Link to IMF’s Global CBDC Platform?