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Coinbase Battles a Flawed Regulator, Says Leading Ripple Lawyer

Ripple’s top lawyer, Stuart Alderoty, has lauded Coinbase’s legal team, led by Paul Grewal, for challenging the U.S. SEC perceived overreach.

Key Takeaways

  • Stuart Alderoty of Ripple praises Coinbase’s legal team, led by Paul Grewal, for contesting the SEC’s regulatory overreach.
  • Coinbase asserts the SEC is overreaching its authority by lacking a clear limiting principle and emphasizes that it does not offer securities.
  • The Ripple case is referenced in the Coinbase hearing, with the SEC disputing Judge Torres’s ruling on distinctions in XRP token sales.
  • The outcome of the SEC lawsuit against Coinbase, determining if certain cryptocurrency transactions involve unregistered securities, awaits a final ruling by Judge Katherine Polk Failla.

Lawyer Challenge to SEC

Ripple’s prominent lawyer, Stuart Alderoty, has expressed admiration for Coinbase’s legal team, led by Paul Grewal, in their ongoing legal battle against the U.S. Securities and Exchange Commission (SEC). Alderoty’s endorsement coincides with Coinbase’s vigorous efforts to have a lawsuit dismissed, a move that challenges the SEC’s perceived regulatory overreach.

Coinbase’s Position and Legal Arguments

Paul Grewal, representing Coinbase, has articulated the company’s stance in response to the SEC’s lawsuit. Grewal contends that the SEC is exceeding its authority by asserting broad jurisdiction over all investment types without a clearly defined limiting principle. He emphasizes that Coinbase does not deal in securities and expresses confidence in the soundness of its legal arguments.

Read More: Ripple and SEC Gear Up for the Next Stage in XRP Lawsuit: What Comes Next?

The Ripple Case and Its Impact on Coinbase

The recent hearing involving Coinbase saw the SEC’s legal team referring to Judge Torres’s ruling in the Ripple case. However, there is a disagreement between the SEC and Judge Torres regarding the classification of XRP token sales to retail investors on the secondary market versus sales to institutions or ‘sophisticated’ investors.

To Conclude

The ongoing legal tussle between Coinbase and the SEC, applauded by Ripple’s top lawyer, highlights the industry’s pushback against perceived regulatory overreach.

As Coinbase contends with the SEC’s claims and draws on legal arguments, the outcome of this case, influenced by the recent Ripple ruling, holds significance for establishing regulatory precedents within the cryptocurrency space. The awaited decision by Judge Katherine Polk Failla could shape the future regulatory landscape for cryptocurrency transactions.