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Today’s XRP News: Legal Battles With SEC, Fed Rate Cut Bets Rouse Crypto Waters
The SEC, the Debt Box and Coinbase’s motion for injunctive relief
Coinbase (CURRENCY) Chief Legal Officer Paul Grewal shared the news that the SEC plans to close the Salt Lake City office, said,
“Friction: Is this what we call unprecedented misrepresentations and bad faith that justify unprecedented sanctions by a federal judge?”
The SEC on Tuesday announced will close its Salt Lake regional office in 2024, saying it has experienced significant attrition. Paul Grewal linked the announcement to the recent SEC case against Debt Box. Judge Robert Shelby of Salt Lake City presided over the Debt Box case.
In March 2024, Judge Robert Shelby denied the SEC’s motion to dismiss the Debt Box case. The Debt Box case garnered considerable interest after Judge Shelby ordered the SEC to show why courts should not sanction the SEC for making false and misleading statements. Judge Shelby also ordered the SEC to pay the legal fees for Debt Box and the bankruptcy trustees.
In Tuesday’s announcement, the SEC also said it will take its budget into account in its decision to close the regional office.
The SEC’s latest announcement comes as markets await a court ruling on Coinbase Cross-appeal motion.
If Judge Katherine Failla grants Coinbase’s motion for interlocutory appeal, the courts will reconsider her decision to to denyin large part, Coinbase’s motion to dismiss (MTD). Coinbase filed the MTD in August, arguing that the SEC lacks statutory authority to regulate U.S. cryptocurrency exchanges.
A Coinbase victory could impact the SEC’s plans to appeal the ruling on XRP programmatic sales.
Investors should monitor updates related to crypto cases, considering the importance of the SEC vs. Coinbase. Additionally, US economic indicators and sentiment towards the Fed’s interest rate trajectory also need to be taken into consideration.