During the last weekend, Ripple’s chief officer, Stuart Alderoty, talked to X and shared insights regarding the XRP lawsuit and Coinbase’s loss to the Securities and Exchange Commission’s (SEC) in Wednesday’s ruling.
On March 27, the SEC requested permission from U.S. district judge Katherine Polk Failla to file a case against Coinbase, citing unregistered security brokerage. Coinbase gave justification and a request to dismiss the complaint, however, the judge refused its request.
During the counterarguments, Alderoty criticized the council by suggesting that the SEC may come up with weak arguments to convince a judge.
“Basically, the SEC sold the Judge a bill of goods that she had to accept as true at this stage of the case,” remarks the Ripple chief.
“Coinbase’s Legal Chief Questions SEC’s XRP Lawsuit Evidence
Alderoty further says that the initial evidence may go in favor of the SEC, but to support their claims, the SEC will face a challenge to provide concrete evidence.
“Now comes the hard part—producing evidence. My bet: the SEC is all hat, no cattle,” Alderoty said.
This statement by Alderoty believes that SEC action against Coinbase appears to be impressive, but this case is worth nothing.
Alderoti quotes a previous incident in the XRP lawsuit to support his views, in which the judge dismissed an expert witness from the SEC side. Through this reference, he criticized the ability of the SEC to bring evidence to the court, relating ongoing cases and previous ripple battles with the SEC.
Judge Katherine Polk Failla allows most of the allegations against Coinbase to go to trial, but dismisses those related to Coinbase’s wallet. As noted, Coinbase is prepared for all the judgments and possible outcomes from the court.
Coinbase’s legal chief stated that Coinbase hoped to uncover SEC internal communication concerning cryptocurrency regulation during the trial.
