Crypto Industry Could Experience “Ripple Effect,” Chris Dolmetsch Says

Chris Dolmetsch, Bloomberg’s legal reporter, recently opined that the Ripple case could bode well for the broader crypto industry. 

Elliott Stein, senior litigation analyst, believes that the recent court ruling could potentially help Coinbase, the largest US cryptocurrency exchange, in its own battle against the SEC.  

The SEC took Coinbase to court last June, accusing the exchange giant of operating as an unregistered broker and clearing agency. Coinbase’s motion to dismiss the lawsuit was rejected in June in a major blow to the exchange. 

Stuart Alderoty, Ripple’s chief legal officer, slammed the SEC’s arguments in the Coinbase case after the agency argued that digital assets have no inherent value. 

There is so much wrong with the SEC’s brief in the Coinbase case I don’t know where to begin. Let’s start with the SEC claiming, without citation or support, that digital assets have no innate or inherent value while collectible baseball cards do.

— Stuart Alderoty (@s_alderoty) October 5, 2023

As reported, Ripple was ordered to shell out $125 million by the court. The ruling was framed as a victory for the company by the San Francisco-headquartered company since the SEC was initially asking for a whopping $2 billion worth of fines and penalties. 

At the same time, Dolmetsch has noted that the case might not be over just yet since the agency could still appeal the court’s decision. 

As reported, a former SEC litigator predicted an SEC lawsuit against Ripple or Coinbase could make it all the way to the Supreme Court.

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