Alas, the crypto industry is finally getting some victory out of their legal battles after the Chief Legal Officer at Coinbase, Paul Grewal, revealed some significant wins with the Securities and Exchange Commission.
In a series of tweets between Coinbase Chief Legal Officer Paul Grewal and other prominent industry personalities, they discussed this win and how it will pave the way for other major wins within the crypto industry.
It has been reported that Coinbase has taken legal action against the SEC, requesting clear guidelines for registering cryptocurrency businesses and assets. This move comes as it has become apparent that the SEC lacks specific regulations for crypto firms operating in the country. Coinbase's lawsuit seeks to compel the SEC to create a public framework outlining the necessary steps for cryptocurrency companies to legally establish themselves.
"The Third Circuit just ruled that it will retain jurisdiction over our challenge to the SEC's inaction on our petition for basic rules for crypto. A further report is due in 120 days. We are grateful that the Court will continue to shine a bright light on an SEC process that until now has operated entirely in darkness," Paul Grewal said on Twitter.
Ripple's CTO David Schwartz also lent his voice to the matter, saying the new development from Coinbase was very significant for the crypto industry. Don't forget that Ripple has had and is still having their own share of legal battles with the Securities and Exchange Commission. The SEC and Coinbase battle is proving to be going the way Ripple wants it.
"This is kind of a rollercoaster. The court insisted the SEC tell it when the commission was going to rule on Coinbase's requset, yay. But then let the SEC get away with taking four months just to update the court on just their progress towards getting a staff recommendation," David Schwartz had immediately commented on Coinbase's legal officer post on Twitter.
The Third Circuit just ruled that it will retain jurisdiction over our challenge to the SEC's inaction on our petition for basic rules for crypto. A further report is due in 120 days. We are grateful that the Court will continue to shine a bright light on an SEC process that… pic.twitter.com/wQu52UuCoU
— paulgrewal.eth (@iampaulgrewal) June 20, 2023
He, however, criticized the court for giving the SEC lawyers a whopping 120 days just to update them on the required processes.
Coinbase SEC Investigation a Victory for the Crypto Industry
Ripple CTO further termed the new development from the SEC and Coinbase legal battle as a victory for the crypto industry. Apparently, Ripple's CTO thought the whole legal battle with the SEC was a publicity stunt from Coinbase. However, with the new development regarding the lawsuit, David Schwarz sees it as a victory.
"To be fair, I think everyone was expecting Coinbase to get nothing at all out of this. Frankly, I considered it a publicity stunt at first. So in that light, this is a victory."
"I guess the most positive spin I can put on it is that the fact that Coinbase was successful in getting any relief at all is likely an indication that at least some of our frustration with the SEC is shared by at least one more Federal judge, and maybe lots more Federal judges," he said.
The outcome of Coinbase is remarkable, as it may raise questions about certain SEC rulings regarding cryptocurrency exchanges. Furthermore, it could assist in establishing well-defined guidelines and regulations for digital currencies. Many are eagerly anticipating the SEC's response within the next 120 days.