Crypto investors have been reacting to the recent lawsuits that the United States Securities and Exchange Commission (SEC) filed against some major crypto exchanges. In a recent post, Ripple CTO, David Schwartz, stated that federal judges have started to feel people’s frustration with the enforcement actions from the SEC.
Schwartz disclosed this information while commenting on the recent court ruling in Coinbase’s lawsuit against the SEC.
Federal Judges Feeling People’s Frustration Due To SEC, Ripple CTO
The US largest crypto exchange Coinbase filed a lawsuit against the SEC in April 2023 aimed to get a response from the regulator on its petition on July 2022 about a rule on digital assets. The Chief Legal Officer at Coinbase, Paul Grewal, took to Twitter to relay the case proceedings.
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Grewal disclosed that Third Circuit Judge Cheryl Ann Krause ruled to retain the Third Circuit will retain jurisdiction of the case.
Also, Judge Ann mandated the SEC to update the court about its progress in having a staff recommendation on or before October 11, 2023.
In response to Grewal’s tweet, Schwartz called the court ruling an unexpected rollercoaster. He was not impressed that the court gave the SEC up to four months just to update its progress of getting a staff recommendation.
However, Ripple’s CTO acknowledged that the ruling was still a victory for Coinbase and the crypto industry.
He indicated that he never expected a significant outcome from the lawsuit against the commission since he believed it was just another publicity stunt.
Additionally, Schwartz mentioned that the court’s order indicates that at least a US Federal Judge feels the frustration that many crypto enthusiasts suffer from the SEC. He also opined that more Federal Judges could have the same feeling too.
On the affirmative ground, the famous Ripple attorney, John Deaton, reacted to the tweet from Ripple CTO. Deaton agreed that many people are highly frustrated by the enforcement actions of the SEC and its Chair, Gary Gensler.
The lawyer stated that the cumulative frustration from crypto participants had positioned Gensler as a political liability in an election season. Deaton said this could lead to Gensler’s “potential ouster and a less aggressive approach to the space.”
SEC Crackdown On The Crypto Industry And Impact
The US SEC has recently maintained a tougher regulatory stance on crypto. The Commission sued the world’s largest crypto exchange Binance on June 5 and the Coinbase crypto exchange, on June 6.
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The SEC’s regulatory approach has frustrated many in the crypto space. Moreover, the impact triggered a drop in the prices of most crypto assets plummeting the cumulative market cap. According to CoinMarketCap, the overall crypto market cap dipped to $1.013 trillion on June 15 following the news of the lawsuits, its lowest point this month.
Featured image from Pixabay and chart from Tradingview.com
