- Following Grayscale’s recent legal win against the SEC, Ripple and XRP legal experts are optimistic about Coinbase’s chances in its pending lawsuit against the SEC.
- Ripple CLO and CEO criticize the SEC for its lack of clear crypto regulation and predict that the enforcement agency’s actions will prove to be unjustifiable in court.
Ripple Execs and Legal Eagles Eye SEC’s Vulnerability
In the wake of Grayscale’s precedent-setting legal victory over the U.S. Securities and Exchange Commission (SEC), the cryptocurrency community is now turning its eyes toward another seminal lawsuit: Coinbase vs. the SEC. Prominent XRP attorneys and Ripple executives are among those who argue that the SEC’s stance lacks legal merit and is emblematic of the regulatory fog surrounding the crypto industry.
Scrutinizing the SEC’s Regulatory Weakness
A panel of judges from the DC Circuit Court of Appeals recently gave a boost to Grayscale Investments, criticizing the SEC for not providing a valid rationale behind their denial of Bitcoin spot ETFs. This decision has ignited conversations about the regulator’s credibility. The SEC and its Chairman, Gary Gensler, have often been ambiguous about the legal status of cryptocurrencies, leading to a widespread sentiment that there is a lack of regulatory clarity.
John Deaton, a well-known Pro-XRP lawyer, openly questioned Gensler’s
“Regulation by Enforcement” policy, quipping, “Hey Gary Gensler, how’s that going for you?”
Deaton echoed the sentiments of crypto analyst Scott Melker, claiming that Coinbase stands a solid chance to “annihilate” the SEC in court.
Ripple’s Chief Legal Officer, Stuart Alderoty, and CEO Brad Garlinghouse have also expressed their concerns about the SEC’s seemingly arbitrary approach to crypto enforcement. Alderoty mentioned,
“The SEC is getting battered in the court… called hypocritical, lacking faithful allegiance to the law.”
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Such criticism puts a spotlight on the agency’s questionable tactics and credibility, particularly when it has been
“fined for discovery abuses.”
Garlinghouse shared his discontent, stating that the crypto community is left with no choice but to engage in legal battles just to disprove the SEC’s nebulous regulatory posture. In his view, the SEC disregards both facts and established law to make their case.
Market Reactions and Implications
After Grayscale’s courtroom win, Coinbase saw its stock price soar by more than 15%, closing at $84.70. This surge is being perceived as a harbinger of positive legal outcomes for Coinbase, as the SEC’s previous arguments appear increasingly untenable in the court’s eyes.
Overall, the sequence of events post-Grayscale’s win seems to weaken the SEC’s position in its pending litigation with Coinbase. And with Ripple executives and legal experts weighing in, the tide appears to be turning against the regulatory body.
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