The Coinbase’s Chief Legal Officer (CLO), Paul Grewal, and pro-crypto lawyers have shed light on the immense importance of Judge Torres’ XRP ruling in the case against the United States Securities and Exchange Commission (SEC).
Notably, the ruling has captured the cryptocurrency community and legal experts’ attention, due to its potential implications on the regulatory landscape surrounding digital assets.
Crypto Lawyers on the Significance of the XRP Ruling
Paul Grewal and XRP advocates reacted to the SEC’s news requesting that Coinbase suspend trading in all cryptocurrencies except Bitcoin (BTC). The demand, however, came before the SEC filed a lawsuit against the US cryptocurrency exchange in June, accusing the platform of operating as an unregistered securities exchange.
However, Coinbase CEO, Brian Armstrong explained that complying with the SEC’s request will jeopardize the entire crypto industry in the United States, as it could set a precedent for other businesses to register with the SEC or risk operating outside the law.
John E Deaton, a crypto lawyer commented on the significance of the XRP ruling. He said
“If the SEC has won the case as it had wished, Gary Gensler and Warren’s crypto army would have been out in full force.”
If the SEC had won the case as it had hoped, @GaryGensler and @ewarren’s anti-crypto army would’ve been out in full force. Do you think all Democrats who’ve spoken out since the Torres Decision, including the 6 who voted in favor of the Bill coming out of the @FinancialCmte,…
— John E Deaton (@JohnEDeaton1) July 31, 2023
Also, CLO Grewal noted that the ruling delivered by Judge Torres is viewed as a landmark decision because it not only allows Ripple to access internal SEC communications regarding the agency’s stance on cryptocurrency regulations but also brings much-needed clarity to the industry.
Additionally, he said, “a Judge’s job is to apply the law as it ought to be and not fill gaps in it”.
A judge’s job is to apply the law as it is, not fill gaps in it. Judge Torres understood this, and as @NYcryptolawyer makes clear, the SDNY has understood this for 50 plus years. https://t.co/BYRy0aJ5ye
— paulgrewal.eth (@iampaulgrewal) July 31, 2023
Overall, the significance of Judge Torres’ Ripple ruling extends far beyond the immediate legal battle between Ripple and the SEC. It has the potential to set critical precedents, establish clearer regulatory guidelines, and impact the entire cryptocurrency ecosystem. As the case continues to unfold, the implications will continue to shape the future of cryptocurrencies and their integration into the global financial landscape.
Recall that Armstrong met with lawmakers from the New Democrat Coalition, a group of centrist House Democrats, regarding digital asset legislation and other related issues including tax, national security, privacy, and climate, a move tipped to generally favor the industry in the near future.