Coinbase’s Legal Battle With SEC Hits Rollercoaster Highs

• Coinbase’s Chief Legal Officer Paul Grewal revealed the recent developments in the legal battle between the company and the SEC.
• Ripple’s CTO David Schwartz reacted to this update and suggested a surprising outcome.
• The Third Circuit has decided to maintain jurisdiction over Coinbase’s challenge against the SEC’s inaction, with a further report due in 120 days.

Coinbase’s Battle With SEC

The U.S. cryptocurrency exchange Coinbase is currently involved in a legal dispute with the Securities and Exchange Commission (SEC). Recently, Paul Grewal, the Chief Legal Officer at Coinbase, announced that the Third Circuit had decided to maintain jurisdiction over their challenge against SEC’s inaction concerning their plea for essential regulations within the crypto domain. A further report is due in 120 days.

Ripple CTO Reacts

David Schwartz, Ripple’s CTO reacted to this update by characterizing it as a „rollercoaster“. He acknowledged that many initially perceived Coinbase’s legal maneuver as an effort to garner publicity without any relief for them; however he took a positive stance and considered it a victory for Coinbase nonetheless.

SEC Must Provide Timeline

In addition, court also instructed SEC to provide a timeline for ruling on Coinbase’s request, granting them four months solely to inform about their progress towards staff recommendation.

Coinbase Seeks Clarity

Coinbase has been working hard since 2018 to bring clarity and certainty around digital assets through its regulatory filing requesting some basic rules concerning cryptocurrencies from SEC. However, so far they have not received any response from US agency thus implying lack of clear guidance or enforcement action of laws related to digital assets like Bitcoin and Ethereum tokens etc., leading Coinbase into this legal battle with SEC demanding clarity on these issues .

Public Interest At Stake

This case will be closely watched by all stakeholders in different industries who are interested in exploring benefits associated with digital assets but may now hesitate due to lack of clear guidelines from government agencies . Moreover , public interest is also at stake here as citizens have now started investing heavily into cryptocurrencies without proper understanding of all associated risks . Let us wait and watch what happens next when Third Circuit releases its final report after 120 days !