Navigating Legal Complexities Amid Coinbase Judgment Fallout: Ripple Faces off Against SEC
Bill Morgan, a seasoned lawyer and digital asset enthusiast, recently engaged in a lively discussion on an X forum to shed light on the ongoing legal battle between Ripple Labs and the U.S. Securities and Exchange Commission (SEC).
In light of the concerns raised by a recent Coinbase hearing, Morgan provided in-depth insights to assure users that the judgment’s impact would have a “neutral” effect on the Ripple lawsuit.
Addressing the apprehensions of the community, Morgan clarified that the recent judgment in the Coinbase v. SEC case was specific to the secondary market sales of certain cryptocurrencies, excluding XRP. He emphasized the limited value of default judgments as precedents, as they lack contested arguments and evidence.
Morgan reassured users, stating, “This was a default judgment concerning secondary market sales of several cryptos… that did not include XRP.”
Responding to inquiries about Judge Torres’ ruling on XRP’s security status, Morgan directed users to specific sections of the summary judgment decision. He highlighted the judge’s clear reasoning on pages 14 and 15 regarding “The XRP Token,” refraining from adding further commentary.
Morgan also addressed concerns about potential appeals, noting that the SEC had acknowledged that XRP is not classified as a security. He clarified that even if the appeal is successful, it would only impact Ripple’s programmatic sales and would not extend to other secondary market sales.
Coinbase’s Chief Legal Officer, Paul Grewal, shared his perspective on the recent default judgment. Grewal expressed concerns about the imbalance in proceedings when the defendant fails to appear, emphasizing that default judgments hold little value as precedents.
“They are not worth anything as precedent or persuasion,” Grewal stated.
Shifting the focus to the XRP Ledger, the article highlighted a significant increase in the XRP burn rate during a price rally. Data from XRPL explorer XRPScan revealed that on March 2, the burn rate reached 6,721 XRP, marking the highest intraday burn in over a month.
Tags: Crypto Regulations, Ripple (XRP)