Coinbase to stand with Ripple in battle against SEC

Sahana Kiran
Ripple
Source – Unsplash

The entire crypto-verse was surprised after the Securities and Exchange Commission [SEC] slapped Ripple with a lawsuit for allegedly selling “unregistered securities.” Time and again, the firm asserted that XRP wasn’t a security. Almost two years and multiple turns later, the case was expected to reach a conclusion in the first half of 2023. Now, a prominent exchange had come in support of the firm.

In a series of tweets, Coinbase’s chief legal officer, Paul Grewal revealed that the platform extended a plea to Judge Torres to file for its amicus curiae brief.

Detailing the reason behind Coinbase’s intention to file an amicus brief, Grewal tweeted,

“Our point is pretty simple: this is a textbook case of just how critical fair notice is any reasonable notice of due process under law.”

The CFO of Coinbase further noted how authorities did not entail the power to “condemn conduct as a violation of law without providing fair notice that the conduct is illegal.” He went on to point out that this sort of fundamental protection was assured by the US Constitution.

Therefore, by suing the sellers of XRP, Grewal alleged that the SEC steered away from its primary principle. He added,

“By suing sellers of XRP tokens after making public statements signaling that those transactions were lawful, the SEC has lost sight of this bedrock principle.”

Here’s what will happen if the court gives Coinbase a green signal

If Judge Torres decides to approve Coinbase’s latest request, the firm will be part of the case. The exchange would operate alongside the crypto application SpendTheBits as well as the non-profit organization Investor Choice Advocates Network. It should be noted that both these platforms filed for amicus briefs and garnered a green signal in October.

Despite Coinbase’s efforts, XRP holders continued exhibiting distress over the exchange listing the asset. Just last week, Ripple’s CEO Brad Garlinghouse took a dig at Coinbase’s CEO Brian Armstrong.