<ul><li>The SEC&#39;s recent ruling against Terraform Labs could hint at its strategy in lawsuits against Green United and Coinbase.</li><li>The major questions doctrine, central to these cases, outlines that Congress doesn&#39;t delegate authority without clear authorization.</li><li>Terraform Labs&#39; stance against the SEC&#39;s allegations reflects the broader industry&#39;s ongoing struggle with regulatory compliance.</li></ul>In a legal development, the United States Securities and Exchange Commission (SEC) has been bolstered by a <a href="https://www.jdsupra.com/legalnews/sec-v-terraform-labs-pte-ltd-sdny-judge-6225832/" rel="noopener noreferrer nofollow">recent ruling</a> against Terraform Labs. The ruling may influence the SEC&#39;s lawsuits against <a href="https://storage.courtlistener.com/recap/gov.uscourts.utd.138270/gov.uscourts.utd.138270.1.0.pdf" rel="noopener noreferrer nofollow">Green United</a> and <a href="https://cryptotale.org/coinbase-to-contest-secs-accusations-in-high-stakes-court-face-off/" rel="noopener noreferrer nofollow">Coinbase</a>, hinting at how the SEC might approach similar cases.On July 31, District Judge Jed Rakoff denied Terraform Lab&#39;s motion to dismiss the case, rejecting the argument based on the &#34;major questions doctrine.&#34; This doctrine, <a href="https://crsreports.congress.gov/product/pdf/IF/IF12077" rel="noopener noreferrer nofollow">established</a> in a 2022 Supreme Court ruling, outlines that Congress intends to make policy decisions and doesn&#39;t delegate authority to agencies without clear authorization. The same argument has been central to crypto defendants, including Coinbase.However, an SEC <a href="https://www.lexology.com/library/detail.aspx?g&#61;26c4c196-ca6a-4e06-8a55-eb9e7eb14eec" rel="noopener noreferrer nofollow">filing</a> made on August 4 indicated that the ruling against Terraform Labs grants further support for dismissing Green United&#39;s defenses based on the major questions doctrine and fair notice arguments. This move by the SEC sheds some light on how it plans to approach Coinbase&#39;s own motion to dismiss. Previously, Coinbase <a href="https://storage.courtlistener.com/recap/gov.uscourts.nysd.599908/gov.uscourts.nysd.599908.36.0.pdf" rel="noopener noreferrer nofollow">argued</a> that the major questions doctrine applied as the SEC attempted to regulate the secondary market for crypto trading.The judge in the SEC vs. Terraform case found that Terraform <a href="https://casetext.com/case/sec-exch-commn-v-terraform-labs-pte-ltd-2" rel="noopener noreferrer nofollow">cannot use</a> the doctrine to disrupt the routine work expected of the SEC. Nevertheless, the SEC has previously used other rulings to strengthen its arguments in similar cases, such as the SEC vs. Ripple Labs case, emphasizing that longstanding court precedent provides sufficient fair notice.Read full article at<a href="https://cryptotale.org/secs-use-of-terraform-ruling-hints-at-strategy-against-coinbase/" rel="noopener noreferrer nofollow"> CryptoTale.</a>

SEC's Use of Terraform Ruling Hints at Strategy Against Coinbase

CryptoTale

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