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Ripple Ruling 'Decimates' SEC's Case Against Coinbase: Gemini CEO

Fri, 07/14/2023 - 08:22
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Godfrey Benjamin
Cameron Winklevoss has reiterated how much win in XRP ruling would help Coinbase's case against SEC
Ripple Ruling 'Decimates' SEC's Case Against Coinbase: Gemini CEO
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The massive Ripple ruling that saw Judge Analisa Torres declare that all secondary sales of XRP are not investment securities has fueled a whole new thesis formation by top leaders in the broader crypto ecosystem. Gemini co-founder and CEO Cameron Winklevoss believes the new regulatory clarity for XRP and the precedent the ruling ushered in is in the best interest of top crypto exchange Coinbase Global Inc.

Taking to his official Twitter account, Cameron said the Ripple ruling "decimates" the lawsuit brought on by the United States Securities and Exchange Commission (SEC) against Coinbase. Recall that the SEC had alleged that Coinbase violated a number of securities laws through its support of unregistered securities offerings.

Based on Judge Torres' ruling, all secondary sales of XRP, and by extension, any token, do not constitute securities. With Coinbase supporting tokens as a secondary broker, the argument of the market regulator might not hold much water when properly analyzed by the presiding judge.

Major Ripple v. SEC Update: XRP Explodes 16% as Judge Torres Delivers Pivotal Summary Judgment Verdict

The SEC v. Coinbase case is still in its infancy, but the precedent set by the XRP ruling can considerably shape how the proceedings and arguments will go.

Bigger win for crypto ecosystem

The XRP win, though with other considerations and rulings to come, has been tagged a big win for the broader digital currency ecosystem. Besides XRP, the SEC has tagged more altcoins, including Cardano (ADA), Solana (SOL), Polygon (MATIC) and Filecoin (FIL), among others, as investment contracts.

Cardano (ADA) Alleged as Security Again as SEC Now Sues Coinbase

As tokens are designed based on open-source algorithms, the designation of XRP may also be applied to these altcoins in the long run as well. The price momentum on the market, as fueled by XRP, is proof that investors are quite elated about the Ripple ruling, with the combined market cap jumping by a massive 6.31% to $1.26 trillion.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.