One more ally. The American exchange platform Coinbase has announced that it wants to help Ripple in its long legal battle against the Security and Exchange Commission (SEC). A blow for the financial policeman?
Coinbase and Ripple allied against the SEC
When the lawsuit was launched against the company Ripple (XRP), few doubted the ability of the SEC to crush the company. But the battle was tougher than expected for the American financial policeman, who found himself in difficulty several times. As a reminder, SEC Says XRP Are Financial Securitiesand therefore that Ripple failed to declare them when they were issued.
? Follow the price of XRP live
A week ago, however, the SEC showed signs of running out of steam… And the market reacted accordingly, driving the price of XRP higher. And today another good news came for Ripple. We learned that night that the Coinbase exchange platform joined the movementand had requested an “amicus brief” from the judge in charge of the case.
An amicus brief allows a person or entity to have an honest intervenor status in an ongoing legal case. Concretely, this would allow Coinbase to transmit information or opinions to the court, in order to help him decide the case. Coinbase is a major exchange in the United States, so its support for Ripple is of great importance.
? To go further – What is Ripple (XRP)?
Will the SEC lose its lawsuit?
Paul Grewal, Coinbase’s head of legal affairs, announced on Twitter that this maneuver concerns the crypto ecosystem as a whole, and the legitimacy of the SEC. Judging that the government agency has lost sight of its founding principlesCoinbase believes that the SEC knows for a fact that it did not warn Ripple that it was not complying with the rules:
One of the fundamental due process protections guaranteed by our Constitution is that government agencies cannot condemn conduct as a violation of law without providing fair notice that the conduct is illegal. 2/3
— paulgrewal.eth (@iampaulgrewal) October 31, 2022
“One of the fundamental aspects of due process, guaranteed by the Constitution, is that government agencies cannot convict acts as violations of laws, without providing reasonable warning regarding the illegality of these acts. »
To be clear, the SEC should not fault Ripple for dodging securities laws, since the company was unaware that its assets were considered securities by the government.
This interpretation of course goes far beyond Ripple. If the San Francisco company wins its lawsuit, it would potentially prevent the SEC from slashing crypto businesses again. The outcome of this affair will therefore be followed with particular attention. And it could happen soon: Brad Garlinghouse, CEO of Ripple, recently claimed that the case would be settled in the first half of 2023.
? Find our presentation of the Coinbase exchange platform
Join Experts and a Premium Community
PRO
Invest in your crypto knowledge for the next bullrun
Source: Paul Grewal via Twitter
Newsletter ?
Receive a summary of crypto news every Monday by email ?
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky in nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
Journalist at Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that stem from the blockchain and I like to find the most crispy information to share with you.
Marine Debelloir
2174 items