Ripple CTO David Schwartz recently expressed his belief that Federal Judges are beginning to share the frustrations that people have with the U.S. Securities and Exchange Commission (SEC). His remarks came in response to the ongoing lawsuit between cryptocurrency exchange Coinbase and the SEC, which has garnered significant attention within the crypto community.
David Schwartz Highlights Court’s Tiredness For SEC And Coinbase Battle
In April 2022, Coinbase filed a lawsuit against the SEC, urging the regulatory body to propose and adopt rules governing the regulation of securities traded through digital assets, such as cryptocurrencies. The exchange sought to push the SEC to respond to its petition, which had remained unanswered for almost a year.
The lawsuit gained further momentum when the Third Circuit issued a 120-day ultimatum to the SEC, effectively pressuring the regulatory agency to address Coinbase’s request. Paul Grewal, Coinbase’s Chief Legal Officer, disclosed this development via a tweet on June 20th, highlighting the court’s decision.
This is kind of a rollercoaster. The court insisted the SEC tell it when the commission was going to rule on Coinbase's requset, yay. But then let the SEC get away with taking four months just to update the court on just their progress towards getting a staff recommendation.
— David "JoelKatz" Schwartz (@JoelKatz) June 20, 2023
David Schwartz Says SEC Vs Coinbase Will Soon Overdue
Reacting to the court’s ultimatum, David Schwartz characterized the Third Circuit’s ruling as a “rollercoaster,” emphasizing that the SEC vs. Coinbase lawsuit was long overdue. While Schwartz applauded the court’s insistence on the SEC revealing its timeline for ruling on Coinbase’s request, he expressed dissatisfaction with the fact that the SEC had taken four months merely to update the court on its progress towards a staff recommendation.
Schwartz further viewed the court’s decision as a victory for Coinbase and the broader crypto asset industry. Interestingly, he revealed that he initially perceived the Coinbase vs. SEC lawsuit as a mere publicity stunt and did not anticipate any significant outcomes.
To be fair, I think everyone was expecting Coinbase to get nothing at all out of this. Frankly, I considered it a publicity stunt at first. So in that light, this is a victory.
— David "JoelKatz" Schwartz (@JoelKatz) June 20, 2023
Coinbase Files Against SEC For Lack Of Response To their Petition For Basic Crypto Rules
Coinbase’s legal action against the SEC stemmed from the regulatory agency’s lack of response to their petition for basic crypto rules, opting instead to intensify enforcement actions and warnings against cryptocurrencies, including Coinbase itself.
Read Also: Terraport 2.0 Faces Hacking Crisis as “Hackers” Manipulate LUNC Coin and Seek Support
The ongoing lawsuit has drawn attention to the need for clear regulatory frameworks surrounding digital assets and the broader crypto industry. As the battle between Coinbase and the SEC continues, many in the crypto community are closely monitoring the developments and potential implications for the future of cryptocurrency regulations.
Overall, with Federal Judges seemingly sharing the frustrations expressed by individuals like David Schwartz, the outcome of the Coinbase vs. SEC lawsuit has the potential to shape the regulatory landscape for cryptocurrencies and may impact how they are offered and traded through digitally native methods in the United States.