In a recent series of Twitter exchanges, Chief Legal Officer at Coinbase Paul Grewal unveiled the latest developments in the legal battle between the Securities and Exchange Commission (SEC) and the major U.S. cryptocurrency exchange. Ripple's CTO, David Schwartz, subsequently reacted to Grewal's tweet, expressing his thoughts on the matter.
The Third Circuit just ruled that it will retain jurisdiction over our challenge to the SEC's inaction on our petition for basic rules for crypto. A further report is due in 120 days. We are grateful that the Court will continue to shine a bright light on an SEC process that… pic.twitter.com/wQu52UuCoU— paulgrewal.eth (@iampaulgrewal) June 20, 2023
Grewal's tweet revealed that the Third Circuit had decided to maintain jurisdiction over Coinbase's challenge to the SEC's inaction regarding their petition for fundamental regulations in the crypto sphere. The court's commitment to shed light on the SEC's opaque procedures was applauded by Grewal.
Responding to Grewal's update, Schwartz described the situation as a "rollercoaster." While the court compelled the SEC to provide a timeline for ruling on Coinbase's request, it allowed the regulatory body a four-month window merely to update the court on their progress toward a staff recommendation. Nevertheless, the Ripple exec conceded that many had anticipated Coinbase to receive no relief at all, initially perceiving the legal maneuver as a publicity stunt.
"This is a victory"
Taking a positive stance, Schwartz interpreted Coinbase's achievement as a victory. He further, ironically, speculated that the fact that the exchange obtained any relief suggested that their shared frustration with the SEC was resonating with at least one federal judge, possibly even more.
As Ripple's CTO vocalizes his support for Coinbase's little victory, the crypto community eagerly awaits a further report due in 120 days. The outcome of this ongoing legal battle will undoubtedly contribute to regulatory clarity in the crypto industry in the U.S.