The post Coinbase Challenges SEC in Court: Echoes of the Ripple Test Resonate appeared first on Coinpedia Fintech News
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.
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.
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.
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.”