Key points:
- Ripple’s Stuart Alderoty criticizes court decision in Coinbase vs. SEC lawsuit.
- He argued that the SEC persuaded the judge with arguments that lacked merit.
- Alderoty believes the upcoming challenge for SEC lies in producing concrete evidence to support their claims.
Over the weekend, Ripple’s Chief Legal Officer Stuart Alderoty took to X to reflect on Coinbase’s loss against the Securities and Exchange Commission (SEC) in the Wednesday ruling.
On March 27, U.S. District Judge Katherine Polk Failla asked the SEC to proceed with its lawsuit against Coinbase, alleging unregistered securities brokerage. The judge’s decision effectively denied Coinbase’s motion to dismiss the SEC’s lawsuit.
In his commentary, Alderoty critiques the court’s decision, suggesting that the SEC may have persuaded the judge with arguments that lack substantial merit. “Basically, the SEC sold the Judge a bill of goods that she had to accept as true at this stage of the case,” the Ripple legal chief remarked.
Re-read Wed.’s Coinbase ruling. Basically, the SEC sold the Judge a bill of goods that she had to accept as true at this stage of the case. Now comes the hard part – – producing evidence. My bet: the SEC is all hat, no cattle.
Furthermore, Alderoty noted that while the initial phase of the legal process may have favored the SEC, the upcoming challenge lies in producing concrete evidence to support their claims.
“Now comes the hard part—producing evidence. My bet: the SEC is all hat, no cattle,” Alderoty said. This expression suggests that Ripple CLO believes the SEC’s legal actions against Coinbase are more show than substance.
Alderoty supported his view by referencing a previous incident in the XRP lawsuit in which a judge dismissed an expert witness brought by the SEC. This reference highlights his skepticism about the SEC’s ability to present convincing evidence, drawing parallels between the ongoing Coinbase case and Ripple’s previous legal battles.
Notably, the court’s ruling allows most of the SEC’s claims against Coinbase to proceed to trial while dismissing those related to Coinbase Wallet. Coinbase, in response to the judgment, noted that it was not surprising as they had prepared for the outcome.
Accordingly, Coinbase Chief Legal Officer Paul Grewal has remarked that the exchange anticipates uncovering the SEC’s internal communications concerning crypto regulation in the trial.
