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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\u2019s 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.<\/strong><\/p>\n 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<\/a>, alleging that the crypto token is a security.<\/p>\n Since the SEC lawsuit was filed, \u201cmultiple U.S. exchanges delisted XRP<\/a>, causing its market value to decline by $15 billion, resulting in significant losses to Coinbase\u2019s customers,\u201d the counsel for Coinbase explained in the filing, noting:<\/p>\n 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.<\/p>\n<\/blockquote>\n In its amicus brief, Coinbase argued that \u201cexisting due process precedents prohibit unforeseen enforcement actions\u201d and \u201cSEC rulemaking is essential to account for new technology in the crypto space.\u201d In addition, \u201ca robust fair notice defense is critical in the absence of crypto rulemaking.\u201d<\/p>\n \u201cUntil the SEC engages in rulemaking for cryptocurrency, the fair notice defense is a constitutionally required brace against arbitrary, surprise cryptocurrency enforcement actions,\u201d Coinbase asserted. \u201cIn the absence of such regulations \u2026 preventing Ripple\u2019s fair notice defense from even being heard at trial will not only undermine Ripple\u2019s 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.\u201d<\/p>\n A number of people on social media have expressed that Coinbase\u2019s move is significant given that the crypto exchange was among the first to delist XRP<\/a> following the SEC lawsuit against Ripple. The securities regulator announced its lawsuit on Dec. 22, 2020, and Coinbase suspended trading in XRP<\/a> on Jan. 19, 2021.<\/p>\n Strategy advisor at Vaneck\/MVIS Gabor Gurbacs commented: \u201cCoinbase suspended XRP<\/a> trading when the SEC sued Ripple alleging that XRP<\/a> is a security. Many other platforms followed delisting XRP<\/a> despite no verdict on the case. Now Coinbase supports XRP<\/a> vs the SEC. The lesson: follow & comply with the law, but don\u2019t try to be the judge\/regulator.\u201d<\/p>\n Tony Edward, the host of the Thinking Crypto Podcast, tweeted:<\/p>\n I don\u2019t 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.<\/p>\n<\/blockquote>\n Last month, Ripple\u2019s CEO said that he expects an answer<\/a> 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<\/a> is not a security. The executive stressed that the XRP<\/a> case \u201cis about the whole [crypto] industry.\u201d<\/p>\nCoinbase Supports Ripple Against SEC<\/h2>\n
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