A recent decision of a US Court to rule against Coinbase has raised questions about its possible implications on the ongoing case of Ripple’s XRP lawsuit.
The court denied Coinbase’s motion to dismiss a lawsuit against it filed by the SEC on the basis that the Commission has provided sufficient information for the court to treat Coinbase as an exchange, broker, and clearing agency operating under federal laws.
The order signifies the SEC’s worries about the Coinbase staking practice and non-registered token sales as well. Interestingly, this opportunity demonstrates a transitional period where parties can now proceed to engage in the discovery stage, during which they can request documents from the other party.
After that, the judgment is expected to change and reverse the conclusion expressed that XRP is not a security.
Legal experts warn that Judge Katherine Failla’s ruling against Coinbase might provide an opportunity to re-examine Judge Analisa Torres’ earlier decision in the XRP case.
The Judge’s upholding of Coinbase’s stand against the citing of Judge Torres’ Ripple ruling as far as precedent demonstrates an accommodation of the adaptability of law in the digital assets landscape. Ripple could ease the terms of an early settlement with the SEC to help move uncertainties related to the direction of the case.
Also read: SEC Requests $2 Billion Penalty from Ripple Labs in XRP Lawsuit
