Bitrabo Editorial
Crypto investors have been reacting to the recent lawsuits filed by the United States Securities and Exchange Commission (SEC) against major crypto exchanges. In a recent post, Ripple CTO David Schwartz stated that federal judges are starting to understand the frustration people feel towards the SEC’s enforcement actions.
Schwartz revealed this information while commenting on the recent court ruling in Coinbase’s lawsuit against the SEC.
Federal Judges Acknowledge Public Frustration with SEC, says Ripple CTO
The largest crypto exchange in the US, Coinbase, filed a lawsuit against the SEC in April 2023 to get a response from the regulator regarding its petition in July 2022 about a rule on digital assets. Paul Grewal, the Chief Legal Officer at Coinbase, shared updates on the case proceedings on Twitter.
Grewal disclosed that Third Circuit Judge Cheryl Ann Krause ruled to retain jurisdiction of the case. Additionally, Judge Ann mandated the SEC to update the court on its progress in obtaining a staff recommendation by October 11, 2023.
In response to Grewal’s tweet, Schwartz called the court ruling an unexpected rollercoaster. He was not impressed with the SEC being given four months to update its progress on getting a staff recommendation. However, Ripple’s CTO acknowledged that the ruling was still a victory for Coinbase and the crypto industry.
He indicated that he never expected a significant outcome from the lawsuit against the SEC, as he believed it was just another publicity stunt. Moreover, Schwartz mentioned that the court’s order indicates that at least one US Federal Judge understands the frustration felt by many crypto enthusiasts towards the SEC. He also expressed the opinion that more Federal Judges may share the same sentiment.
On a positive note, Ripple attorney John Deaton reacted to Schwartz’s tweet, agreeing that many people are highly frustrated with the SEC’s enforcement actions and its Chair, Gary Gensler. Deaton stated that the cumulative frustration from crypto participants had made Gensler a political liability in an election season. Deaton suggested that this could lead to Gensler’s potential removal and a less aggressive approach to the space.
SEC Crackdown on the Crypto Industry and Its Impact
The SEC has recently taken a tougher regulatory stance on crypto. The Commission sued the world’s largest crypto exchange, Binance, on June 5 and Coinbase on June 6.
The SEC’s regulatory approach has frustrated many in the crypto space and has also caused a drop in the prices of most crypto assets, resulting in a decrease in the overall crypto market cap. According to CoinMarketCap, the overall crypto market cap dipped to $1.013 trillion on June 15 following the news of the lawsuits, its lowest point this month.
Featured image from Pixabay and chart from Tradingview.com