SEC Filings and Coinbase Responses Create Uncertainty

In January, the SEC requested Judge Failla consider the Terraform Labs ruling. Judge Rakoff ruled TerraUSD and Luna are securities while criticizing the Programmatic Sales of XRP ruling.

The SEC also alerted Judge Failla of Judge Tana Lin (SEC v Wahi) ruling tokens acquired in an insider dealing case were investment contracts. Judge Lin ruled the tokens were investment contracts even on a secondary exchange.

Coinbase Chief Legal Officer Paul Grewal had this to say about the Lin ruling in the SEC v Wahi case,

“Default judgments aren’t contested. The whole point is that the defendant didn’t show up from his hideout in India or wherever to contest anything. So, the judge literally has the SEC on one side and no one on the other.”

Grewal added,

“The judge here confirmed in her order that she only considered the SEC’s filings and did not consider any amicus briefs or other papers showing the fallacy of the SEC’s arguments.”

Nonetheless, the ruling created uncertainty about the MTD and its influence on the SEC v Ripple case. Coinbase filed a response to the SEC v Wahi ruling, saying,

“The Wahi order was procured against an empty chair and its reasoning reflects as much. Coinbase respectfully submits that the default judgment against Mr. Ramani should be afforded no weight.”

Notably, the filings may delay a court ruling on the Coinbase Motion to Dismiss and leave XRP in limbo. The SEC may also have time to appeal against the Programmatic Sales of XRP ruling before Judge Failla rules on the Coinbase MTD.

XRP could face intensifying selling pressure if the SEC appeals the Programmatic Sales of XRP ruling.

XRP Price Action