The ongoing legal debates involving the SEC, Coinbase and Ripple could alter the entire ecosystem
Pro-XRP lawyer John Deaton, who represents numerous XRP token-holders, recently traced the possible steps the two parties might take amid assumptions regarding a potential resolution between Ripple and the US Securities and Exchange Commission (SEC).
Deaton explained that if the judge grants Coinbase’s motion to dismiss their case against the SEC, it would make token sales on the exchange exempt from US securities laws. However, crypto staking would not apply.
He said, “The only way Ripple and the SEC (could) settle before the end of the year is if Judge Failla grants the Coinbase motion to dismiss or partially grants it – finding token sales on an exchange in a blind bid/ask transaction do not fall under U.S. securities laws.”
If the motion to dismiss is granted, the SEC would be limited in its ability to seek an appeal, meaning a settlement is a rational option. Deaton also pointed out that even if an appeal were possible in this case, the SEC would have diminished authority.
In a filing dated September 1, Ripple demonstrated that the summary judgment didn’t address the interlocutory appeal’s legal basis. Opposition to the appeal argued that the SEC wandered from the established legal standpoint regarding applying the Howey test to sales of XRP tokens.
The December 2020 SEC lawsuit targeted Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen, resulting in several exchanges removing XRP to avoid possible legal difficulties. However, many exchanges revealed they intended to relist the token after Judge Analisa Torres’ favorable ruling in July.
The SEC has accused several cryptocurrency firms of securities violations in 2023, including Binance and Coinbase. Asset manager Grayscale recently won a legal victory against the SEC on August 29 after filing an appeal that ordered a review of its Bitcoin exchange-traded fund application.
Emma Rodriguez is the Proofreader at the Big Blind, with seven years of experience and five years in online gambling. She plays a crucial role in maintaining content quality by ensuring error-free, reader-friendly information about the gambling industry.
