Crypto Exchange Coinbase Files Amicus Brief to Support Ripple in SEC Lawsuit Over XRP – Featured Bitcoin News

Cryptocurrency exchange Coinbase has filed an amicus curiae brief in support of Ripple Labs in the US 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 one of the first trading platforms to delist xrp following the SEC lawsuit.

Coinbase supports Ripple against the SEC

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

Since the SEC lawsuit was filed, “multiple US exchanges XRPcausing its market value to decrease by $15 billion, resulting in significant losses for Coinbase customers,” Coinbase’s attorney explained in the filing, noting:

In the absence of a regulatory framework governing digital assets, Coinbase believes that parties like Ripple should be allowed to seek fair notice defenses in matters where they face surprise enforcement actions like this one.

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

“Until the SEC is involved in rulemaking for cryptocurrencies, the fair notice defense is a constitutionally required enforcement against arbitrary and surprise crypto enforcement actions,” Coinbase stated. “In the absence of such regulations…preventing Ripple’s fair notice defense from being heard at trial will not only undermine Ripple’s ability to take advantage of a defense afforded by basic principles of due process, it will also give the SEC no incentive to participate in the rule-making work that is needed by the cryptocurrency industry and its customers.”

Several people on social media have expressed that Coinbase’s move is significant given that the crypto exchange was one of the first to be delisted. XRP following the SEC lawsuit against Ripple. The securities regulator announced its lawsuit on December 22, 2020, and Coinbase suspended trading of XRP on January 19, 2021.

Vaneck/MVIS Strategy Advisor Gabor Gurbacs commented: “Coinbase suspended XRP trade when the SEC sued Ripple claiming that XRP it is a security. Many other platforms followed the delisting XRP even though there is no verdict in the case. Coinbase now supports XRP against the SEC. The lesson: follow and abide by 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 people realize how important it is for Coinbase to file an amicus brief on behalf of Ripple in the SEC lawsuit. I think the industry as a whole sees a win for Ripple.

Last month, the CEO of Ripple said that he wait for 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 it is not a security. The executive noted that the XRP case “it is about the totality [crypto] industry.”

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

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kevin helms

Kevin, an Austrian economics student, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in the security of Bitcoin, open source systems, network effects, and the intersection between economics and cryptography.

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