Stuart Alderoty, a prominent lawyer at Ripple, has lauded the legal team at Coinbase, led by Paul Grewal, for their ongoing legal resistance against the U.S. Securities and Exchange Commission (SEC). This endorsement coincides with Coinbase’s efforts to dismiss a substantial lawsuit.
Coinbase’s Stand in the SEC Legal Clash
Representing Coinbase, Paul Grewal recently outlined the company’s stance on the SEC’s lawsuit. In a series of statements, Grewal argued that the SEC is exceeding its authority by asserting broad jurisdiction over all types of investments without a clearly defined limiting principle.
Emphasizing that Coinbase does not offer securities, Grewal expressed confidence in the soundness of their legal arguments. He also underscored the significance of Congress, rather than the SEC, in establishing regulatory boundaries. This echoes the industry’s collective call for more precise legislative guidance within the cryptocurrency domain.
The Ripple Case and Its Implications for Coinbase
During a recent hearing related to Coinbase, the SEC’s legal team referred to Judge Torres’s ruling in the Ripple case. The SEC lawyer contested Judge Torres’s decision, which distinguished between sales of the XRP token to retail investors on the secondary market and to institutional or ‘sophisticated’ investors.
The outcome of the SEC lawsuit against Coinbase hinges on whether transactions involving approximately a dozen cryptocurrency tokens constitute unregistered securities. Judge Katherine Polk Failla has not yet issued a final ruling on whether the lawsuit should be dismissed, with a decision anticipated in the coming weeks. This case is closely monitored as it carries the potential to establish a significant precedent for the cryptocurrency industry.
