“A quick knock out punch would have been nice, but at the end of the day, the wheels of justice move slowly, eventually siding with the good guys. The CB Judge gave the SEC the benefit of doubt at this early stage – as she must. This is far from over.”

A partial ruling that the cryptocurrencies referenced in the case are not securities would have been a positive outcome for the broader crypto market.

It was a bad first half of the week for XRP and the broader crypto market. On Tuesday, the SEC released a redacted version of its remedy-related opening brief in the SEC vs. Ripple case. Significantly, the SEC is pursuing a $2 billion penalty for Ripple selling unregistered XRP to institutional investors.

SEC vs. Coinbase: The Background

In June 2023, the SEC charged Coinbase for allegedly operating as an unregistered securities exchange, broker, and clearing agency. Additionally, the SEC charged Coinbase for the unregistered offering and selling of securities in connection with its staking-as-a-service program.

Coinbase filed the Motion to Dismiss in August 2023, arguing the SEC lacked the statutory authority to regulate US crypto exchanges.

Coinbase shares ended the Wednesday session down 3.79% to $256.70.

XRP Price Action