John Reed Stark, a former executive of the United States Securities and Exchange Commission (SEC) has slammed Coinbase in its lawsuit with the regulator. Taking to his official X account, the SEC Veteran noted that Coinbase can no longer claim it does not have the regulatory clarity it has been clamoring for.
Former SEC Official John Reed Stark’s Position on Coinbase
The legal brawl between the US SEC and Coinbase has taken a new twist with the trading platform exploring an appeal to the latest ruling from Judge Polk Failla. Earlier on, the trading platform requested the court to grant a Motion To Dismiss (MTD) request, claiming the SEC has no case.
In a major twist Judge Failla noted that the SEC has adequately pled that its case that Coinbase offered securities to investors. The trading platform has continued to argue that there is a lack of regulatory clarity the SEC is basing its argument on.
Responding to the current trend, John Reed Stark noted that the denial of the MTD request and how the legal cases of Telegram, Kik, LBRY and Terraform Labs ended provides decades of regulatory clarity Coinbase could hang onto. John Reed also noted that the decades of precedence that this cases offer provides at least 80 years of legal precedent for Coinbase.
This argument that there is no basic legal precedent applicable to cryptocurrencies remains a major one in the industry today. Crypto proponents, especially the legal experts have always argued that many of the tokens SEC proscribe are not securities. Riding on this, Coinbase is pursuing an Interlocutory Appeal against the MTD denial ruling.
In the Ripple Labs versus SEC case, Judge Analisa Torres ruled that XRP in itself is not a security. The ruling at the time posits that XRP tokens acquired on exchanges like Coinbase by retail investors do not violate securities laws. Market experts has hinged their arguments that Coinbase has a strong case around this ruling.
Congress Might Determine New Rules
The regulatory landscape in the United States and how crypto leaders perceive it remains quite volatile. The uncertainty in crypto regulation and how it affects social discourse also sparked a major X spat between Ripple CEO Brad Garlinghouse and Tether CEO Paolo Ardoino.
While Garlinghouse has attempted to correct the wrong notions that triggered Ardoino’s harsh comments, the role of US Lawmakers is now amplified more than ever. Crypto Advocates like John Deaton believes the country need a bi-partisan approach to addressing the lack of clarity in the industry.
Though John Reed Stark believe SEC is justified in its Coinbase lawsuit, the majority might determine the regulatory path in the near future.
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