Moreover, the decision could influence the pending court ruling on the Coinbase (COIN) Motion for Interlocutory Appeal.
SEC vs. Coinbase: Consensys and the Coinbase Motion for Interlocutory Appeal
Coinbase filed the Motion for Interlocutory Appeal in April 2024 to contest the court ruling, denying, in large part, the Coinbase Motion to Dismiss (MTD).
Judge Failla did not dismiss the charges against Coinbase for operating as an unregistered securities exchange, surmising that,
“The court concludes that because the well-placed allegations of the Complaint plausibly support the SEC’s claim that Coinbase operated as an unregistered intermediary of securities, Defendants’ motion must be denied in large part.”
Pro-crypto lawyer MetaLawMan highlighted the possible implications of the SEC ending its investigation into Consensys, saying,
“The SEC Lawyers argued repeatedly (and successfully) in the Coinbase hearing that: Digital Asset + Ecosystem = Security. But now they acknowledge that ETH (a digital asset + ecosystem) is NOT a security.”
If Judge Failla considers the SEC stance with Consensys, she could grant the Coinbase Motion for InterlocutoryAppeal. A Coinbase win against the SEC would further diminish SEC hopes of overturning the Programmatic Sales of XRP ruling.
SEC plans to appeal against the Programmatic Sales of XRP ruling remains a headwind.
Ripple Chief Legal Officer Stuart Alderoty reacted to the news on X (formerly Twitter), posting,
“A big win for Consensys, though questions remain. Does this mean the SEC thinks Consensys’ offers and sales of ETH are not securities transactions and/or that ETH itself is not a security? What will Gensler say if now asked? What is the status of MetaMask and staking? This is no way for a government to regulate.”
XRP Price Action
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