Ripple CTO David Schwartz Keeps Up With SEC: ‘Explain Regulations!’

Ripple CTO David Schwartz, Coinbase’s From the U.S. Securities and Exchange Commission (SEC) He once again reacted to the latest Wells notification.

Ripple CTO Asks SEC to Clarify Crypto Regulations

XRP Ledger David Schwartz, the architect behind it, criticized the SEC on Twitter for failing to provide clear guidelines on cryptocurrency regulation.

Obviously the SEC can’t tell you what the rules are. If they do, you’ll just comply with them. https://t.co/k5UY9wjzum

— David “JoelKatz” Schwartz (@JoelKatz) March 24, 2023

Schwarz’s comments came in response to Coinbase chief legal officer Paul Grewal’s statement that the SEC should provide reasonable rules for crypto in the US and that Coinbase is willing to follow suit.

A Wells notice is a formal notice that gives the buyer an opportunity to respond to the claims before the regulator decides to pursue the case in court.

He also said that the SEC is not fair or reasonable in its work on digital assets, and that rule-making and legislation are better tools for the industry than enforcement actions to define the law.

Coinbase trusts the legality of its assets and services and is open to a legal process to ensure clarity.

Coinbase met with the SEC more than 30 times over the course of nine months, but they did all the talking. Coinbase’s staking and exchange services have not changed drastically since 2021, and their core business models remain the same.

Coinbase’s stance is that the US crypto regulatory environment needs more guidance, not more sanctions.

The company also stated that staking services are not securities under any legal standard, including the Howey test.

Schwartz also addressed the question of why Ripple did not seek a letter of inaction from the regulator before launching XRP.

In response to this, he tweeted that he was not part of the process. At the same time, he suggested that it seems highly unlikely that his own company will benefit from it, as no other crypto companies have had a fruitful outcome from this process.

*Not investment advice.