Rebecca Rettig, the Chief Legal and Policy Officer at Polygon Labs, has discussed the recent developments and implications of the SEC’s lawsuits against Ripple and Coinbase. She has highlighted both sides’ legal arguments and challenges in the ongoing cases.
Last month, Judge Analisa Torres ruled that institutional XRP sales were deemed securities transactions, excluding secondary market sales.
She clarified that XRP itself did not violate securities laws. The SEC intends to challenge this decision, emphasizing that different courts might hold varying perspectives.
During a recent podcast, Rebecca explained;
“Both the Ripple and Coinbase motions for judgment on the pleadings aim to emphasize a return to legal fundamentals. The situation may appear novel, but it diverges from existing paradigms. Therefore, we cannot simply import notions of implied contracts into the definition of an investment contract.”
The SEC vs. Ripple case has been ongoing since December 2020, when the SEC filed a complaint against Ripple and its executives, alleging that they raised over $1.3 billion through an unregistered securities offering of XRP.
Ripple has denied the allegations and argued that XRP is a digital currency, not a security.
The case is expected to go to trial in the second quarter of 2024, as both parties have informed Judge Torres about their availability.
The trial will be a crucial moment for the future of XRP and the crypto industry at large.
SEC vs. Coinbase: The Regulatory Battle Heats Up
In June 2021, the SEC filed a lawsuit against Coinbase, alleging that the exchange violated securities laws by operating as a broker, exchange, and clearing agency for certain cryptocurrencies classified as securities.
The SEC identified 13 tokens that fall under this category, including USDC, DAI, UNI, AAVE, and COMP.
Discussing the Coinbase case, Rebecca noted, “The briefing stage is ongoing for Coinbase’s case. Given its high profile, the industry will contribute significantly.
A verdict is distant, as extensive discovery and briefings lie ahead—assuming the case progresses.”
She further remarked, “The judge overseeing the Coinbase case exhibited skepticism towards the SEC. She questioned whether the SEC had previously greenlit this particular case, allowing for an IPO.”
The SEC vs. Coinbase case is another landmark dispute shaping the regulatory landscape for crypto exchanges and tokens in the US.
Coinbase has challenged the SEC’s authority and claimed that it has complied with all applicable laws and regulations.
Rebecca Rettig: A Crypto Legal Expert
Rebecca Rettig is the Chief Legal and Policy Officer at Polygon Labs, a leading Ethereum scaling and infrastructure development platform.
She is also a partner at FisherBroyles LLP, where she advises clients on blockchain and fintech matters.
Rebecca has extensive experience in crypto litigation and regulation, having represented several prominent projects and platforms in the industry.
She has also been involved in policy advocacy and education efforts to promote a favorable legal environment for crypto innovation.
