ACoinbase, an American trading platform, has declared its desire to support Ripple in its protracted legal struggle with the Securities and Exchange Commission (SEC). A setback for the financial enforcer?
Against the SEC, Coinbase and Ripple joined forces.
Few questioned the SEC’s capacity to destroy Ripple (XRP) when legal action was taken against the business. The American financial policeman, however, realized that the fight was more difficult than he had anticipated and that he frequently ran into difficulties. Recall that the SEC contends that XRP is a financial security and that Ripple should have disclosed this at the time of issuance.
Nevertheless, the SEC started to lose steam a week ago. The price of XRP then increased as a result of the market’s response. Another piece of excellent news for Ripple arrived today. Last night, we learnt that the Coinbase trading platform was supporting the cause and had asked the court overseeing the case for permission to file a “amicus brief.”
An amicus brief enables a person or organization to participate in a current legal dispute in an impartial manner. Concretely, this would provide Coinbase the ability to provide the court with facts or opinions to aid in the case’s decision. Since Coinbase is a significant exchange in the US, it is crucial that it supports Ripple.
Will the SEC’s case be successful?
Head of legal affairs at Coinbase Paul Grewal stated on Twitter that this action raises questions about the credibility of the SEC and the whole crypto industry. Coinbase thinks the SEC knew full well that it did not alert Ripple that it was breaking the law since the government agency has lost sight of its core principles:
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. 1/3 pic.twitter.com/qhSSGrNgJK
— paulgrewal.eth (@iampaulgrewal) October 31, 2022
To be clear, the SEC shouldn’t hold Ripple responsible for breaking securities laws since the business was not aware that the government regarded its assets as securities.
Of fact, this understanding extends well beyond Ripple. The San Francisco company’s action might stop the SEC from shutting down cryptocurrency operations once more if it is successful. We shall consequently pay close attention to how this situation turns out. And it may occur soon: CEO of Ripple Brad Garlinghouse previously asserted that the matter will be resolved in the first half of 2023.
![Pinterest](https://pinterest.com/pin/create/button/?url=https://cryptowiky.com/coinbase-joins-ripple-in-its-battle-against-the-sec/&media=https://cryptowiky.com/wp-content/uploads/2022/11/Progetto-senza-titolo.png&description=Coinbase, an American trading platform, has asked the court overseeing the case for permission to file a "amicus brief". The SEC contends that XRP is a financial security and that Ripple should have disclosed this at the time of its issuance. This action raises questions about the credibility of the SEC and the whole crypto industry.){kind=link}