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HomeCrypto NewsMarketFormer Securities Lawyer Says SEC "Could Be Awaiting Ripple Ruling" Before Suing Coinbase

Former Securities Lawyer Says SEC “Could Be Awaiting Ripple Ruling” Before Suing Coinbase


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A former SEC lawyer Marc Fagel explains what could be delaying the commission’s enforcement action against Coinbase.

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Former SEC lawyer Marc Fagel took to Twitter to reveal the possible reasons why the US Securities and Exchange Commission (SEC) has not taken any legal action against Coinbase, America’s largest crypto exchange by trade volume.

Recall that Coinbase disclosed in March that it received a Wells Notice from the commission.

The SEC notified Coinbase that it made a preliminary determination to recommend an enforcement action against the exchange, alleging violations of federal securities laws. A month later, Coinbase responded to the SEC’s Wells Notice, stating that it does not list securities.

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Following the SEC’s Wells Notice to Coinbase, many expected the commission to subsequently charge the exchange with violating federal securities laws.

Yesterday, famous cryptocurrency enthusiast Mr. Huber (@Leerzeit) pointed out that the commission has not sued Coinbase despite issuing a Wells Notice to the firm two months ago.

“Btw. Where is that SEC lawsuit against @coinbase everybody was talking about? The Wells Notice is now more than two months back, and nothing happened. Much ado about nothing,” said Huber.

Ripple Lawsuit Could Be Delaying Action Against Coinbase

Reacting to the tweet, Fagel noted that it is not unusual that the SEC has still not sued Coinbase despite issuing a Wells Notice to the company two months ago.

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“It typically takes 30-60 days after a Wells submission is received for an enforcement action, if approved, to be filed (longer if meaningful settlement talks),” Fagel disclosed.

The former SEC lawyer noted that the Wells submission was made around April 19. He also stressed that the SEC could await a ruling in the Ripple lawsuit before proceeding with an enforcement action against Coinbase.

Pro-XRP Lawyer Reacts

Fagel’s opinion has prompted reactions from XRP enthusiasts, including Australian-based lawyer Bill Morgan. In a tweet yesterday, attorney Morgan asked Fagel whether the SEC will halt the enforcement action against crypto exchanges if it loses its case against Ripple.

The former SEC lawyer has yet to respond to attorney Morgan’s inquiry in the hours leading up to press time.

SEC vs. Ripple Lawsuit 

Notably, the legal battle between the SEC and Ripple has lingered for over two years. The commission alleges that Ripple raised $1.3 billion by selling unregistered securities – a claim Ripple has vehemently contested.

The case has been fully briefed, and the parties are expecting a summary judgment decision any moment from now. While there is no official date for a final verdict, Ripple CEO Brad Garlinghouse expects the judge to issue a ruling in the coming weeks. This is according to a recent report from The Crypto Basic.

Meanwhile, legal experts believe the case outcome will play a huge role in determining cryptocurrency regulations in the United States. A win for the SEC could make the commission become the primary regulator for crypto. However, a win for Ripple could pave the way for favorable and clearer cryptocurrency regulations.

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Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.



Lele Jima
Lele Jima
Lele Jima is a cryptocurrency enthusiast and journalist who is focused on educating people about how the nascent asset class is transforming the world. Aside from cryptocurrency-related activities, Jima is a lover of sports and music.

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