Judge Can Spotlight SEC Contradictory Positions Against Ripple Without Coinbase lawsuit

Attorney Morgan says Judge Torres knows of SEC’s contradictory positions in Ripple’s lawsuit.

In the wake of Coinbase’s lawsuit against the US Securities and Exchange Commission, legal experts have been analyzing the impact of the case on other crypto-related legal battles, especially the SEC vs. Ripple case.

In a tweet yesterday, a lawyer, who goes by the pseudonym MetaLawMan, explained that he does not believe the Coinbase lawsuit will directly affect the case outcome between the SEC and Ripple.

However, he asserted that the lawsuit would help to “shine the spotlight” on the SEC’s contradictory positions about its regulatory authority over digital assets. He added that other Judges would likely take note of the SEC’s contradictory positions. 

6/ While Coinbase’s action does not directly affect pending SEC cases against @Ripple/ $XRP, Bittrex and others,

It does a great job of shining a spotlight on the SEC’s contradictory positions about of its authority to regulate digital assets.

Other judges will take note.

— MetaLawMan (@MetaLawMan) April 25, 2023

The comment has sparked reactions from members of the cryptocurrency community. Pro-XRP lawyer Bill Morgan also reacted to the comment. 

According to attorney Morgan, the Judge in charge of the SEC v. Ripple lawsuit, Judge Analisa Torres, does not need the Coinbase lawsuit to “shine the spotlight” on the agency’s contradictory positions. 

The SEC made contradictory claims in the Ripple lawsuit, especially its shifting stance on William Hinman’s document, the draft of the former SEC director’s controversial 2018 speech where he declared Ethereum and Bitcoin as non-securities. 

“In the Ripple case, the SEC took contradictory positions on the Hinman Speech, which is itself contradictory to some of the SEC’s current positions,” said Morgan.

SEC’s Shifting Stance on Hinman’s Speech

Recall that the SEC had initially argued that Hinman’s speech reflects his personal opinion and not the commission. However, the regulator changed its position when Judge Sarah Netburn requested documents related to the drafting of the speech. 

It claimed the document is protected by attorney-client privilege because Hinman obtained legal advice from SEC counsel when drafting the speech. 

Judge Sarah Netburn blasted the SEC over its contradictory arguments on Hinman’s speech. She asserted that the SEC is only adopting legal positions that support its goal of expanding control in the emerging market, adding that the regulator lacks faithful allegiance to the law. 

Reacting to Judge Netburn’s remark to the SEC, Morgan said he would be concerned about being “professionally disciplined” if a Judge told him that he lacks faithful allegiance to the law. 

Not great. If a judge said that about me as a lawyer I would be concerned about being professionally disciplined

— bill morgan (@Belisarius2020) April 25, 2023