Ripple CTO Slams SEC for Lack of Clarity Amid Coinbase Victory  

• Ripple CTO David Schwartz pointed out an essential weakness on the part of the SEC stating that the agency does not clearly explain. 
• We now get some good news for Coinbase as it wins a partial victory in court while highlighting the very selective nature of the SEC. 
• Crypto proponents lobby for specific rules in the quest to solve industry quandaries, calling out for policy transformation. 

Ripple’s Chief Technology Officer, David Schwartz recently criticized the United States Securities and Exchange Commission (SEC) for failing to provide regulatory guidelines. His comments came after Coinbase recently successfully sued the SEC over the agency’s regulatory strategy. Yesterday Schwartz posted a detailed excerpt where he noted that SEC’s rules are extremely vague thus, they constitute a violation of the due process since the commission does not give sufficient notice to the crypto stakeholders. 

SEC’s Focus Ignores Crypto Diversity 

The SEC has been scrutinized for applying broad, outdated regulations designed for traditional stocks to the highly diverse cryptocurrency industry. Specifically, the Commission has targeted assets resembling securities while overlooking stablecoins, utility tokens, and major cryptocurrencies such as Bitcoin and Ether. Critics argue this approach does not account for the innovative and distinct features of digital assets. 

Coinbase Wins Legal Petition Against SEC 

This was rather a carte blanche for the Third Circuit Court of Appeals in holding that the SEC’s regulatory order was a case of arbitrariness and hence they dismissed it as being arbitrary and capricious. Thus the court required from the SEC its further elaboration. Coinbase ‘s Chief Legal Officer, Paul Grewal brought into focus this decision and made special emphasis on the corresponding need for the SEC to act transparently and responsibly in this burgeoning industry.  

Many in the crypto industry have complained about the lack of a ‘suitable regulation plan’ by the SEC. The continuing state of ambiguity puts constant pressure on the exchanges, issuers, and other participants in potential enforcement actions. Many stakeholders emphasize that cryptocurrency’s unique characteristics require an industry-specific regulatory structure that moves beyond traditional securities rules. 

Anticipation of Policy Shifts 

Analysts anticipate a potential policy shift with the possibility of Donald Trump returning to the presidency. His administration is expected to prioritize addressing the regulatory challenges faced by the crypto sector. This includes the prospect of appointing a new SEC chair to replace Gary Gensler and implementing clearer policies designed to support blockchain technology and digital assets.