- Court orders SEC to revisit Coinbase’s petition for clearer crypto regulations.
- Ripple’s Stuart Alderoty criticizes SEC’s selective enforcement of crypto laws.
- Coinbase’s victory pushes the SEC for more transparent and reasoned rulemaking.
Ripple’s Chief Legal Officer, Stuart Alderoty, applauded Coinbase’s court victory in its ongoing legal battle with the U.S. SEC. Alderoty called it a significant setback for SEC Chairman Gary Gensler’s legal strategies.
He argued that the court’s decision exposed the SEC’s overreach of securities laws, which he believes was a veiled attempt to stifle the crypto industry.
Similarly, Coinbase’s Chief Legal Officer, Paul Grewal, expressed his satisfaction with the court’s decision, viewing it as a win for both Coinbase and the crypto market.
Grewal highlighted the court’s strong criticism of the SEC’s refusal to consider Coinbase’s rulemaking petition. He emphasized the court’s position that the SEC’s order lacked sufficient explanation.
He also pointed to Judge Bibas’s concurrence, which raised constitutional concerns about enforcement actions without clear rules or guidance from the SEC. Grewal noted that arbitrary enforcement of outdated rules harms the entire industry instead of protecting investors from fraud.
Court Orders SEC to Reassess its Crypto Stance
This legal victory comes after the U.S. Court of Appeals for the Third Circuit intervened in the dispute. The court ordered the SEC to re-evaluate its position on Coinbase’s petition for clear crypto regulations. The court deemed the SEC’s initial denial unreasonable and lacking proper justification, ruling it arbitrary and capricious.
Coinbase had requested clear regulatory guidance from the SEC on the crypto industry, but the SEC rejected this request. In its ruling, the Court of Appeals stated that the SEC’s denial lacked a proper explanation and failed to meet legal standards for clarity.
The court granted Coinbase’s petition and sent the case back to the SEC and demanded a more detailed explanation of the SEC’s stance on crypto regulations.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
