Crypto Exchange Coinbase Files Amicus Brief to Support Ripple in SEC Lawsuit Over XRP

Share This Post

Crypto Exchange Coinbase Files Amicus Brief to Support Ripple in SEC Lawsuit Over XRP

Cryptocurrency exchange Coinbase has filed an amicus brief in support of Ripple Labs in the U.S. Securities and Exchange Commission (SEC) lawsuit over xrp. Coinbase’s support is seen as a significant step in the case given that the crypto exchange was among the first trading platforms to delist xrp following the SEC lawsuit.

Coinbase Supports Ripple Against SEC

The Nasdaq-listed cryptocurrency exchange Coinbase filed an amicus brief on Tuesday in support of Ripple Labs against the U.S. Securities and Exchange Commission (SEC). The regulator sued Ripple, its CEO Brad Garlinghouse, and co-founder Chris Larsen over the sale of XRP, alleging that the crypto token is a security.

Since the SEC lawsuit was filed, “multiple U.S. exchanges delisted XRP, causing its market value to decline by $15 billion, resulting in significant losses to Coinbase’s customers,” the counsel for Coinbase explained in the filing, noting:

In the absence of a regulatory framework governing digital assets, Coinbase believes that parties like Ripple must be permitted to pursue fair notice defenses in matters where they are facing surprise enforcement actions like this one.

In its amicus brief, Coinbase argued that “existing due process precedents prohibit unforeseen enforcement actions” and “SEC rulemaking is essential to account for new technology in the crypto space.” In addition, “a robust fair notice defense is critical in the absence of crypto rulemaking.”

“Until the SEC engages in rulemaking for cryptocurrency, the fair notice defense is a constitutionally required brace against arbitrary, surprise cryptocurrency enforcement actions,” Coinbase asserted. “In the absence of such regulations … preventing Ripple’s fair notice defense from even being heard at trial will not only undermine Ripple’s ability to avail itself of a defense afforded by the basic tenets of due process, but will also give the SEC no incentive to engage in the rulemaking work the cryptocurrency industry and its customers need.”

A number of people on social media have expressed that Coinbase’s move is significant given that the crypto exchange was among the first to delist XRP following the SEC lawsuit against Ripple. The securities regulator announced its lawsuit on Dec. 22, 2020, and Coinbase suspended trading in XRP on Jan. 19, 2021.

Strategy advisor at Vaneck/MVIS Gabor Gurbacs commented: “Coinbase suspended XRP trading when the SEC sued Ripple alleging that XRP is a security. Many other platforms followed delisting XRP despite no verdict on the case. Now Coinbase supports XRP vs the SEC. The lesson: follow & comply with the law, but don’t try to be the judge/regulator.”

Tony Edward, the host of the Thinking Crypto Podcast, tweeted:

I don’t think folks realize how significant it is that Coinbase is filing an amicus brief on behalf of Ripple in the SEC lawsuit. I think the industry at large sees a victory for Ripple.

Last month, Ripple’s CEO said that he expects an answer in the SEC lawsuit in the first half of 2023. He noted that Ripple would consider a settlement with the SEC if the regulator states that XRP is not a security. The executive stressed that the XRP case “is about the whole [crypto] industry.”

What do you think about Coinbase supporting Ripple against the SEC? Let us know in the comments section below.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Bitcoin Set To Gain If Trump Wins, JPMorgan Cites ‘Debasement Trade’ As Key Factor

According to JPMorgan analysts, a win for the Republican US presidential candidate Donald Trump could further fuel Bitcoin (BTC) price momentum Retail Investors Turn To Bitcoin For ‘Debasement

MicroStrategy About To Increase Its Bitcoin Stash By Over 4x With New $42 Billion Plan

MicroStrategy has shocked the crypto community with its latest plans to increase its Bitcoin stash by 4X with an impressive $42 billion capital plan Known for its unwavering Bitcoin accumulation

A 36-Digit Debt: Google’s Penalty in Russia Climbs Beyond Imagination

Google faces a spiraling fine from Russia, surpassing two undecillion rubles and doubling weekly, with potential service blocks looming as tensions escalate Google and the Unending Fine: How a

Bitcoin Price Takes a Sharp Dip: Is This Just a Correction?

Bitcoin price is correcting gains from the $73,500 zone BTC is back below the $70,000 level and showing a few bearish signs Bitcoin started a fresh decline from the $73,500 zone The price is trading

JPMorgan Hit with $151 Million SEC Settlement Over Misleading Customers

The post JPMorgan Hit with $151 Million SEC Settlement Over Misleading Customers appeared first on Coinpedia Fintech News JPMorgan Chase has agreed to pay $151 million to settle five SEC charges,

Coinbase Unveils $25M For Political Donations As Stocks Suffer Worst Day In Over Two Years

In a strategic move to increase its influence in the political landscape, US-based cryptocurrency exchange Coinbase has committed an additional $25 million to Fairshake, a political action committee