The legal tussle between Coinbase and the U.S. Securities and Exchange Commission (SEC) has gained notable traction with the crypto community, including a pro-XRP lawyer, reacting to it. Notably, the case intensified as a federal court denied Coinbase’s motion to dismiss the SEC lawsuit on March 27.

Meanwhile, this development has drawn comparisons from a pro-XRP lawyer, who equates Coinbase’s predicament with Ripple’s protracted legal ordeal. So, let’s delve into the intricacies of both cases and the implications for the cryptocurrency landscape.

Coinbase Vs SEC: Legal Battle Continues

Coinbase, one of the leading crypto exchanges, faces a significant legal setback as a U.S. federal court rejects its motion to dismiss the SEC lawsuit. The court ruled that the SEC’s claims against Coinbase, particularly regarding its operations as an exchange, broker, and clearing agency, merit further examination.

However, the court has dismissed certain allegations related to Coinbase Wallet’s role as an unregistered brokerage. Despite that, it allowed the lawsuit to proceed to the discovery phase, signaling a challenging legal battle ahead for Coinbase.

Meanwhile, pro-XRP lawyer Bill Morgan draws parallels between Coinbase’s current predicament and Ripple’s longstanding legal saga. Morgan suggests that Coinbase is now experiencing the same regulatory scrutiny and challenges, labeling the situation as “hell”, that Ripple has endured for over three years.

Notably, this comparison underscores the escalating regulatory pressures faced by prominent players in the cryptocurrency industry. In addition, it also highlights the need for clarity and regulatory certainty moving forward.

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Ripple’s Ongoing Tussle

In the Ripple vs. SEC lawsuit, the securities regulator seeks substantial remedies against Ripple Labs, alleging violations of securities laws in XRP sales. The SEC’s proposed remedies include disgorgement of over $876 million, prejudgment interest, and a hefty civil penalty, totaling nearly $2 billion.

Notably, the SEC accuses Ripple of conducting unregistered offerings of XRP, primarily targeting institutional investors and causing harm to retail investors by failing to disclose discounts.

However, Ripple CEO Brad Garlinghouse criticizes the SEC’s punitive measures, arguing that the proposed penalties are disproportionate and unjustified, particularly in the absence of fraud allegations. Garlinghouse contends that the SEC’s actions reflect a broader pattern of regulatory overreach and inconsistency, echoing sentiments shared by Ripple’s Chief Legal Officer, Stuart Alderoty.

Meanwhile, as Ripple prepares to submit its opposition to the SEC’s proposed remedies, the ongoing legal battle underscores the regulatory uncertainties plaguing the cryptocurrency industry. The outcome of both the Coinbase vs. SEC and Ripple vs. SEC cases is poised to have far-reaching implications for crypto regulation and market dynamics, emphasizing the urgent need for regulatory clarity and a balanced approach to enforcement.

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The post Pro-XRP Lawyer Compares Coinbase Vs SEC Lawsuit With Ripple appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am