"SEC's win against Coinbase puts Ripple's victory at risk: top journalist reveals"

Fox Business reporter Charles Gasparino speculated that an appeals court could overturn Ripple’s victory against the SEC, based on Judge Torres’ ruling rejecting the Coinbase case. A recent court decision in the SEC’s lawsuit against Coinbase has added to the uncertainty surrounding the regulator’s legal dispute with Ripple Labs. Judge Failla sided with the SEC, rejecting Coinbase’s arguments. To recap, in its attempt to unwind the SEC lawsuit, leading San Francisco-based exchange Coinbase cited Ripple’s decision, specifically regarding the programmatic sale of XRP on the digital exchange. However, on Wednesday, March 27, U.S. District Judge Katherine Polk Failla rejected that argument, essentially siding with the SEC. A higher court could overturn Ripple’s legal victory. Interestingly, the SEC beat Coinbase at such an early stage in this litigation, which prompted a reaction from Charles Gasparino, a senior reporter at Fox Business. Citing comments made on the matter by a number of anonymous securities lawyers, Gasparino claimed that Failla’s decision serves as a warning to XRP holders and claimed that a higher court could overturn Ripple’s victory. Gasparino noted that while Judge Failla rejected Ripple’s decision, she relied on Judge Jed Rakoff’s reasoning in the SEC v. TerraForm Labs case. Like Judge Failla, Judge Rakoff also rejected Judge Torres’ reasoning regarding Ripple’s programmatic XRP sales. Prior to this, Gasparino had been speculating that the appeals court would overturn Ripple’s victory against the SEC, claiming that Judge Torres’ decision showed that XRP was both a security and a non-security. Since Judge Failla issued the Coinbase decision, there has been a flurry of debate over whether the Second Circuit will overturn Ripple’s decision. As expected, top industry commentators have been critical of Gasparino’s decision against Coinbase and its significance to the Ripple lawsuit. In particular, Seedstarter founder Jesse Hynes described Gasparino's opinion as "a terrible one." Hines criticized Gasparino’s reasoning, stressing that no real lawyer would apply a ruling issued in a dismissal lawsuit to a summary judgment rendered in the Ripple case. To provide context, the SEC’s case against Coinbase has only entered the discovery phase, and the judge’s final decision in the case has yet to come out. Interestingly, Bill Morgan, a pro-XRP lawyer in Australia, also described Gasparino’s presentation as a poor take. It remains to be seen whether the SEC will appeal Judge Torres’ decision after the remediation phase. Last year, Judge Torres denied the SEC’s motion to appeal Ripple’s programmatic sales and other XRP distributions. She ordered the regulator to wait until all outstanding issues in the case are resolved at the district court level before filing a full appeal. Currently, the adjudication action is the only outstanding issue in the lawsuit, and the SEC has filed its opening brief. As a result, top crypto stakeholders, including Ripple CTO David Schwartz, believe the judge will make a final decision this year. Once the court issues its final decision, the SEC will decide whether to challenge the ruling on the programmatic sales and other distributions. Meanwhile, if the Second Circuit affirms Judge Torres’ decision, the SEC could potentially elevate the Ripple ruling into legal precedent for the broader crypto market. Disclaimer: This content is for informational purposes only and should not be considered financial advice. The opinions expressed in this article may contain the personal opinions of the author and do not necessarily reflect the views of The Crypto Basic. Readers are encouraged to perform thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.