XRP Legal Head: US SEC Claims In Coinbase Lawsuit ‘Baseless’
Ripple XRP legal chief Stuart Alderoty found fault with the U.S. Securities and Exchange Commission (SEC) brief asking the Court to deny crypto exchange Coinbase the motion to dismiss the SEC lawsuit. The agency had in its June 6, 2023 complaint accused the platform of operating as an unregistered national securities exchange, broker, and clearing agency.
Also Read: Elon Musk Under SEC Investigation Over Twitter Acquisition
The XRP Ruling
In a filing on October 3, 2023, the US SEC said Coinbase was wrong to cite the XRP ruling wherein Judge Analisa Torres found that Ripple was not in violation of the US federal securities laws while selling the tokens to retail buyers. In the filing, the agency asserted that some of the crypto assets listed on Coinbase qualify as investment contracts under the Howey Test. Further, the agency said the token issuers invited investors “reasonably to expect the value of their investment to increase.”
Whether or not the issuers guarantee any profits out of the investments is crucial to determining the qualification under the Howey Test, which was also central to the landmark Summary Judgment in the XRP lawsuit delivered on July 13, 2023. In line with this, Judge Torres had on Oct0ber 4, 2023 denied the SEC’s motion to file an interlocutory appeal. The judge said SEC failed to explain how the Court “improperly applied the Howey Test” to facts of the Ripple lawsuit.
US SEC Claims: What’s To Support
Meanwhile, Ripple’s Alderoty said the SEC’s brief in the Coinbase lawsuit was baseless, explaining that its claims lacked “citation or support.” The SEC’s claims on applying Howey Test to crypto assets were criticized earlier by the likes of John Deaton, the lawyer who represents the thousands of XRP token holders in the SEC lawsuit. Deaton maintained that the SEC could not cite a single lawsuit in which the sale of crypto tokens was linked with the application of the Howey Test.
There is so much wrong with the SEC’s brief in the Coinbase case I don’t know where to begin. Let’s start with the SEC claiming, without citation or support, that digital assets have no innate or inherent value while collectible baseball cards do.
— Stuart Alderoty (@s_alderoty) October 5, 2023
Also Read: FTX Co-Founder Gary Wang Says Execs Lied About Alameda’s Large Withdrawals
- Will Bitcoin Rally as JPMorgan Tips Fed To End QT at FOMC Meeting?
- White House Crypto Czar Backs Michael Selig as ‘Excellent Choice’ To Lead CFTC
- Ripple Explores New XRP Use Cases as Brad Garlinghouse Reaffirms Token’s ‘Central’ Role
- Kyrgyzstan Adds Binance Coin (BNB) to National Crypto Reserve, CZ Confirms
- Ripple-Backed Evernorth Grows XRP Treasury to $1B Ahead of Nasdaq Listing
- Analyst Eyes Key Support Retest Before a Rebound for Ethereum Price Amid $93M ETF Outflows and BlackRock Dump
- Bitcoin Price Eyes $120K Ahead of FED’s 98.3% Likelihood to Cut Rates
- PEPE Coin Price Prediction as Weekly Outflows Hit $17M – Is Rebound Ahead?
- HBAR Price Targets 50% Jump as Hedera Unleashes Massive Staking Move
- Chainlink Price Outlook: Analyst Predicts $100 as Reserve Adds 63K LINK
- SUI Price Prediction as TVL and Monthly DEX Volume Hit All-Time Highs- What’s Next?
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
