Coinbase Supports Ripple’s SEC Battle: Files Amicus Brief

Leading American cryptocurrency exchange Coinbase is seeking permission to file an amicus brief, also known as “friend of the court,” in support of Ripple Labs’ ongoing court case with the United States Securities and Exchange Commission (SEC). 

According to a court document submitted on October 31, the exchange sought permission from Judge Analisa Torres of the United States District Court for the Southern District of New York Judge to file the petition against the Commission. 

SEC v. Ripple: The Genesis

Recall that in December 2020, the SEC officially sued Ripple and its executives, Chris Larsen and CEO Brad Garlinghouse, for allegedly conducting unregistered securities sales by selling XRP tokens to U.S. investors without authorization from the Commission.

The agency argued that Ripple generated $1.3 billion in its initial coin offering (ICO) through the sales of XRP, which the regulator now labels as securities. 

Following the SEC’s action, crypto exchanges in the U.S. began delisting the token on their platforms, causing the token’s market value to depreciate by $15 billion.

The mass delisting event affected most Coinbase users as the exchange also suspended trading of the asset pending the court’s ruling. 

Coinbase Shows Support for Ripple 

Coinbase has now come out to support the fintech company, noting that Ripple Labs should be allowed to pursue a “fair notice defense” where it faces surprise enforcement actions like the case with the SEC.

The exchange argues that the securities watchdog failed to provide fair notice before bringing enforcement action against the company. 

“Given the absence of SEC rulemaking for the crypto industry, the question of whether the SEC has given fair notice before bringing an enforcement action against sales of one of the thousands of unique digital assets will often be highly fact-intensive, which makes it particularly ill-suited for adjudication on summary judgment,” the court document reads.  

Coinbase also claims that the SEC has been inconsistent with how it polices the crypto industry, creating “uncertainty” for companies in the space. 

“In addition, existing SEC registration requirements for national securities exchanges are currently unsuitable to the way digital asset platforms operate.”

Meanwhile, Coinbase is one of several companies to support Ripple in its ongoing case with the SEC since the outcome will set a precedent in the crypto industry. 

On October 28, the American-based crypto advocacy group Blockchain Association filed for “a friend of the court” petition to stand with Ripple. 

The post Coinbase Supports Ripple’s SEC Battle: Files Amicus Brief appeared first on CryptoPotato.

Related Posts

Regulators face public ire after FTX collapse, experts call for coordination

U.S regulators and their failure to avoid another crypto contagion have raised a lot of questions over their credibility. 2022 is nearing an end and might go…

Addresses That Sat Idle for Years Transferred 1,221 Bitcoins Worth $20M Over the Last 4 Days

During the last seven days, bitcoin’s price has remained above the $16K region following the aftermath of FTX’s collapse. Since then, a number of ‘sleeping bitcoins’ that…

Are Metacities a Step Forward in the Metaverse, or Just a Pipe Dream?

Mark Zuckerberg’s announcement of a Facebook rebrand and his concept of a Metaverse has spurred advances in the sector, including the rise of “metacities Facebook became Meta,…

SBF Says FTX Customers Deposited Around $5B Into Alameda-Controlled Account

Sam Bankman-Fried said he could not explain how billions of customer funds were missing at Alameda. SBF added that customer funds deposited into FTX might have been…

Elon Musk Says SBF Donations to Democrats ‘Probably’ Over $1 Billion

Elon Musk has alleged that the former CEO of bankrupt crypto exchange FTX, Sam Bankman-Fried, has donated over a billion dollars to the Democratic party to support…

Crypto Lender Genesis Owes Crypto Exchange Gemini Clients $900M, FT Report

Crypto lender Genesis owes US-based crypto exchange Gemini customers $900 million, according to a December 3 Financial Times report. The report revealed that Gemini had formed a…

Generated by Feedzy