Mark Cuban and Coinbase CLO Uncover Inconsistencies in SEC’s Ripple Ruling Appeal
Elena R24 Jul 20231 min read
In a surprising turn of events, the U.S. Securities and Exchange Commission (SEC) suggests an appeal against the recent court ruling favoring Ripple. Claiming that Judge Analisa Torres erred in her landmark verdict, the SEC has spiced up the ongoing saga in the crypto-verse.
SEC on the Backfoot: Struggling to Build a Case?
The SEC’s court filings hint at an impending recommendation for review in the XRP lawsuit ruling. However, one can’t help but notice their argument contradicts the core principles of securities laws. This pickle hasn’t gone unnoticed. Paul Grewal, Coinbase’s Chief Legal Officer, has pointed out the commission’s inability to cite a case where the Howey Test’s applicability varies based on the nature of investors.
Grewal criticizes the SEC’s handling of the case, suggesting they’re debating policy over law, failing yet again to present a convincing case. This observation comes at a time when Coinbase, the U.S.’s largest crypto exchange, is also fending off legal action from the SEC for alleged neglect of securities and trading laws.
Mark Cuban Steps into the Ring: Every Buyer is Not an Investor
Billionaire investor Mark Cuban has added his two cents to the mix, drawing attention to the SEC’s broad-stroke approach of labeling every buyer as an investor. This perspective highlights the complexities of the debate surrounding the definition of ‘investor’ in the crypto space.
Ripple’s Rollercoaster Ride: Price Dips in Response to Appeal News
The mere whisper of an SEC appeal has sent shockwaves through the crypto market, nudging Ripple’s price down from a ruling-induced high of $0.93 to $0.72. Angel investor Evan Luthra perceives this move as the SEC trying to suppress crypto.
