Coinbase CEO Brian Armstrong has recently expressed his belief that Ripple’s legal victory against the U.S. Securities and Exchange Commission (SEC) could have a positive impact on his crypto exchange’s legal battle with the regulatory agency.
Armstrong said this in a recent interview with CNBC. Recall that the SEC sued Coinbase on June 5, accusing the company of operating an unregistered securities exchange and offering unregistered securities through its staking program.
Read Also: Coinbase Leverages Ripple and XRP Victory In Motion to Dismiss SEC Lawsuit
The favorable ruling in Ripple’s case, where a judge concluded that secondary sales of XRP did not classify as securities transactions, has given Armstrong confidence in his company’s defense strategy.
Speaking on the same day as Coinbase’s “Stand With Crypto” event in Washington, DC, the CEO stated that they felt very confident about their case against the SEC.
Brian Armstong noted:
“For example, in the Ripple and the Terraform case, the judge ruled that the underlying assets themselves were not securities. That’s an important fact in our case as well,”
Armstrong’s confidence stems from recent court cases in which judges ruled that specific cryptocurrencies were not securities. He pointed to Ripple’s case and another involving Terraform Labs as examples where the judges determined that the underlying assets themselves were not securities. This finding would undermine the SEC’s argument that Coinbase operates an unlicensed securities exchange, thereby nullifying the agency’s claims.
Despite his discontent with the SEC’s regulation-by-enforcement approach, Armstrong spoke favorably about the need for clear regulations in the crypto industry to protect investors. He referenced the collapse of FTX as an example of the dangers posed by bad actors.
Read Also: JPMorgan Evaluates XRP Lawsuit Final Ruling, States Why Coinbase Should Rejoice
The Coinbase CEO expressed his preference for the regulator to follow the law by publishing clear rules and engaging in a rule-making process, which would make it easier for crypto-related companies to comply.
In his concluding remarks, Armstrong emphasized the necessity for regulatory clarity to be established by the U.S. Congress, rather than relying on the courts to provide it.
The recent acknowledgment by the Coinbase CEO shows that Ripple was not only fighting for the future of XRP in the United States but also for the entire crypto industry. This is the reason why the big victory called for celebration.
Follow us on Twitter, Facebook, Telegram, and Google News
