- Coinbase in support of Ripple (XRP) in battle against SEC.
- The crypto exchange denotes what wrong SEC has done.
- Whether “regulatory clarity” was specifically provided.
The Actuality
The largest crypto exchange in the world in terms of trading volume, Coinbase has filed an amicus brief (friend-of-the-court) in federal court today. It is in support of Ripple Labs (XRP) against the ongoing case between the U.S. Securities and Exchange Commission (SEC). Recents update on what is finally going to be the result is yet to be done in the coming year 2023.
The SEC filed the lawsuit against Ripple back in December 2022, Ripple being accused of selling unregistered XRPs worth over $US 1.38 billion. General counsel Stuart Alderoty of Ripple previously stated that the SEC has handed over internal documents to Ripple which consist of feedback delivered by former SEC Corporation Finance Division director WIlliam Hinman on crypto, which resulted as a central point in the argument of the case.
Paul Singh Grewal is an American attorney working as chief legal officer at Coinbase,Paul Grewal posted on Twitter- “ Earlier today, coinbase asked Judge Torres for permission to file an amicus brief in the SEC case over XRP. Our point in pretty simple: this is a textbook case of just how critical fair notice is any reasonable notice of due process under law.”
Coinbase Chatters
In order to support Rippe’s case against the SEC, Coinbase is helped by SpendTheBits which is a crypto payments app that uses XRP, a Blockchain Association which represents reputable leaders of the US Blockchain and crypto industry.
The crypto exchange also pointed out that SEC before finally enforcing the action was not a “fair notice”, which conjoins with the usual industry objection that the regulatory body has not suggested specific clear guidance to organizations in the ongoing filing.
Coinbase filling represents- “Given the absence of SEC rulemaking for the cryptocurrency 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.”
In a document of Amicus Curiae of Coinbase, Inc. in support of the defendants’ fair notice defense. The major three points mentioned -Existing due process precedents prohibit unforeseeable enforcement actions, SEC rulemaking is essential to account for new technology in the crypto process, and finally robust fair notice defense is critical in the absence of Crypto rulemaking.
Coinbase filing also claimed- “Ripple and others have been the subject of extensive enforcement scrutiny while others – with nearly identical products or services – have apparently been subject to none.”
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.