u.today
Stuart Alderoty, Ripple's chief legal officer, believes that Coinbase's legal battle with the US Securities and Exchange Commission (SEC) is far from being over.
"A quick knockout punch would have been nice, but at the end of the day, the wheels of justice move slowly, eventually siding with the good guys," Alderoty wrote on the X social media profile.
Alderoty has added that the court merely gave the regulator "the benefit of doubt" at such an early stage.
As reported by U.Today, Coinbase's motion to dismiss the SEC's lawsuit has failed.
Paul Grewal, Coinbase's top attorney, remains defiant, claiming that his company will now be working to uncover more information about the SEC's stance on cryptocurrency regulation during the discovery phase.
"We look forward to proving we’re right, we are eager for the opportunity to take discovery from the SEC for the first time," Grewal added.
Coinbase CEO Brian Armstrong has stated that his company will continue fighting. He has also framed the ruling by U.S. District Court Judge Katherine Polk Failla as a "great win for self-custodial wallets" since she dismissed the SEC's claims about Coinbase's Wallet app acting as an unregistered broker.
Despite the efforts to downplay the recent setback by Coinbase and its proponents, it is worth mentioning that the exchange was expected to win this motion. For instance, Bloomberg analyst Elliot Stein estimated that there was a 70% chance that the judge would dismiss the lawsuit.
Now, Coinbase will have to face a protracted and expensive legal battle against the SEC. The company's stock is down nearly 4% this Wednesday.
Meanwhile, Ripple, despite scoring a partial victory against the SEC last year, is now facing a whopping $2 billion worth of penalties and fines.