Coinbase has launched a counteroffensive against the Securities and Exchange Commission (SEC) in a legal tussle, questioning the SEC’s authority and drawing parallels with the SEC’s previous clash with Ripple. Coinbase argues that its offerings do not fall under “investment contracts” and accuses the SEC of overstepping its bounds and disregarding securities laws. The outcome of this case could have significant implications for the crypto landscape, including the Ripple case. If the court rejects previous rulings in the Ripple case, it could establish a unique legal niche for XRP. The SEC may be deterred from appealing the Ripple verdict if other judges lean in its favor, as escalating the matter to higher courts carries risks. This case could set a precedent known as “The Ripple Test” that will impact the crypto industry.
AI Sentiment: Neutral