Cryptocurrency exchange Coinbase has filed a brief supporting Ripple Labs in the US Securities and Exchange Commission (SEC) lawsuit over xrp. Coinbase’s support is seen as a major step forward in the case that the crypto exchange was among the first to delist xrp following the SEC lawsuit.
Coinbase Backs Ripple Against the SEC
Nasdaq-listed crypto exchange Coinbase filed an amicus brief on Tuesday in favor of Ripple Labs against the United States Securities and Exchange Commission (SEC). The regulator sued Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen over the XRP sale, alleging that the crypto token is a security.
Since the SEC lawsuit was filed, “multiple U.S. exchanges have delisted XRP, causing its market value to drop by $15 billion, resulting in significant losses for Coinbase customers.” , Coinbase advisors explained in the filing, noting:
In the absence of a regulatory framework that governs digital assets, Coinbase believes that parties like Ripple should be allowed to pursue fair notification protections in the matters they are facing with illegal practices. unexpected execution like this.
In its amicus brief, Coinbase argued that “current due process precedents prohibit unforeseen enforcement actions” and that “the SEC’s rule-making is essential to account to new technology in the crypto space”. Additionally, “a strong fair-message safeguard is crucial in the absence of crypto-rule.”
Coinbase asserts: “Until the SEC gets involved in crypto rulemaking, the fair notification safeguard is a constitutionally mandated lever against arbitrary crypto enforcement actions.” convenient, unexpected,” Coinbase affirmed. “In the absence of such regulations… preventing Ripple’s fair message protections from even being brought to trial would not only undermine Ripple’s ability to take advantage of blockchains. fundamentals of due process, but also leaves the SEC with no incentive to participate in the rule-making work that the crypto industry and its clients need. “
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Some on social media have expressed that Coinbase’s move is significant as the crypto exchange was among the first to delist XRP following the SEC’s lawsuit against Ripple. The Securities Regulatory Authority announced their lawsuit on December 22, 2020, and Coinbase suspended trading in XRP on January 19, 2021.
Strategy Advisor at Vaneck/MVIS Gabor Gurbacs commented: “Coinbase halted XRP trading when the SEC sued Ripple alleging that XRP is a security. Many other platforms have delisted XRP despite no ruling on the case. Now Coinbase Supports XRP vs. SEC. Lesson: obey and obey the law, but don’t try to be a judge/regulatory body.”
Tony Edward, host of the Thinking Crypto Podcast, tweeted:
I don’t think people realize how important it is that Coinbase is filing a love brief on behalf of Ripple in the SEC lawsuit. I think the whole industry sees a win for Ripple.
Last month, Ripple’s CEO said that he expects an answer in his lawsuit with the SEC in the first half of 2023. He noted that Ripple will consider a settlement with the SEC if the regulator claims that XRP not securities. The CEO emphasized that the XRP case “is about the entire [cryptocurrency] industry.”