Bitwise Founder Comments on Ripple Legal Case and Brad Garlinghouse: 'They've Recently Emerged Victorious'
The ongoing legal battle between Ripple and the SEC has been a significant focus in the cryptocurrency world, but its ripples extend far beyond the case itself. The SEC's enforcement actions have had a profound impact on major players in the crypto sphere, notably Coinbase and Uniswap, by increasing scrutiny around crypto staking services and prompting regulatory adjustments.
Coinbase, a centralized exchange, finds itself in the midst of narrowing but still significant enforcement, primarily revolving around the packaging and marketing of their staking services. The SEC's focus has shifted from broadly labeling staking as an unregistered security to targeting how these services are presented by platforms like Coinbase, influencing compliance requirements for exchanges and decentralized platforms.
In response to regulatory overreach, Coinbase has taken legal action, using mechanisms like the Freedom of Information Act (FOIA) to expose closed-door regulatory actions and challenging what it perceives as regulation-by-enforcement campaigns by the SEC.
Recent developments indicate a partial retreat in the SEC's enforcement aggressiveness, starting early 2025. The SEC has dismissed some enforcement actions against Coinbase and is moving toward more formal rulemaking, though enforcement pressures remain. This more permissive stance coexists with ongoing compliance challenges, as platforms must still navigate evolving rules and heightened scrutiny.
Uniswap, a decentralized finance (DeFi) platform, operates in an environment of increased regulatory scrutiny related to staking and securities laws. Although explicit enforcement actions by the SEC similar to those against Coinbase are less documented in 2025 sources, decentralized platforms broadly face heightened regulatory risk, especially where token offerings or staking-like features exist.
As the legal dispute between Ripple and the SEC moves forward, with a court date set for August 15, 2025, Ripple's CEO, Brad Garlinghouse, has been praised for his efforts in the ongoing battle. Bitwise Asset Management co-founder and CEO, Hunter Horsley, has called Garlinghouse a role model for pushing back against the SEC's aggressive enforcement actions.
Ripple, currently ranked the 23rd biggest private company worldwide with a $15B valuation, has been one of the first companies to fight back against the SEC's actions and recently prevailed. The company's RLUSD stablecoin was ranked the #1 'Most Trusted' in the market.
However, the SEC's actions have also impacted Uniswap and Coinbase, but the nature of the challenges faced by these companies from the SEC remains unspecified. The potential impact of these actions on the price of XRP remains unknown.
In summary, the regulatory dynamic beyond the Ripple case demonstrates a complex, evolving landscape where enforcement impacts both centralized exchanges like Coinbase and decentralized platforms like Uniswap, shaping operational and compliance approaches around crypto assets and staking services. As the industry continues to evolve, companies must adapt to shifting SEC interpretations and enforcement focus, particularly concerning staking offerings.
- Coinbase, in response to the SEC's enforcement actions, is challenging perceived regulation-by-enforcement campaigns through legal means such as the Freedom of Information Act and seeking to expose closed-door regulatory actions.
- Uniswap, a decentralized finance platform, faces heightened regulatory scrutiny related to staking and securities laws, particularly where token offerings or staking-like features exist, reflecting the evolving landscape of crypto asset regulation.
