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Ripple’s CTO David Schwartz highlights the SEC’s insufficiencies. Coinbase recently won a petition against the SEC. Crypto industry stakeholders are wary of the SEC’s regulatory approach. Ripple’s CTO, David Schwartz, criticized the SEC’s regulatory approach following Coinbase’s recent legal win against the agency. Schwartz shared an excerpt highlighting how the SEC’s lack of clarity fails to provide adequate notice, violating due process requirements. !! https://t.co/koLR6VkQ6x pic.twitter.com/bTeRxgS1BY — David “JoelKatz” Schwartz (@JoelKatz) January 13, 2025 The shared text called out the SEC for applying broad rules to a diverse crypto industry. The Commission has focused on cryptos that resemble traditional stocks, ignoring the distinct characteristics of stablecoins, utility tokens, and other digital assets like Bitcoin and Ether. Crypto Industry Demands Tailored Regulations In the meantime, crypto community stakeholders decry the SEC’s silence over a tailored regulatory framework. The uncertainty leaves issuers and exchanges operating without assurance that their activities will not face future SEC action. Meanwhile, Coinbase’s Chief Legal Officer (CLO) Paul Grewal highlighted the court’s decision on a writ of mandamus the crypto exchange filed at the Third Circuit. According to Grewal, the court ruled that the SEC’s order was conclusory and insufficiently reasoned, making it arbitrary and capricious. On that basis, the court partly granted Coinbase’s petition and remanded it to the SEC for a more complete explanation. Related: Coinbase Granted Appeal in SEC Lawsuit, ‘Ripple Effects’ Anticipated Hope for Policy Change Under Trump’s Administration It is worth noting that many crypto industry stakeholders have criticized the SEC’s regulatory approach, citing the limitations of applying the same rules used for traditional stocks for crypto. The stakeholders based their argument on cryptocurrency’s novelty and uniqueness. They believe existing laws do not sufficiently address cryptocurrency’s unique qualities. Hence, there is a need for an industry-specific framework that will cater to the…

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Filed under: News - @ January 14, 2025 12:26 pm