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HomeLaw & PoliticsCoinbase Submits Documents In Support Of Ripple Against SEC Case

Coinbase Submits Documents In Support Of Ripple Against SEC Case

Crypto exchange Coinbase has petitioned a federal court for permission to file a friend-of-the-court (amicus) brief in the ongoing lawsuit between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs.

Ripple was sued by the SEC at the tail end of 2020 on allegations that it sold XRP as an unregistered security. Coinbase is now joining the Blockchain Association, an industry lobbyist group, SpendTheBits, a cryptocurrency payments app that uses XRP, and John Deaton, a lawyer, in an effort to strengthen Ripple’s case against the SEC.

The discussion focused on whether or not the SEC offered “fair notice” prior to commencing its enforcement action, which was a dig at the widespread criticism within the sector that the agency has not given clear direction to firms throughout the process.

“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,” Coinbase’s filing said.

Coinbase stated in a similar manner that the SEC has been inconsistent in its approach to the enforcement of its regulations, which causes “uncertainty” for businesses operating in the industry.

This point takes up a significant portion of the petition, and the opinion that the regulator has not engaged in any regulation that would “give the regulatory certainty” that corporations desire to see is also maintained throughout the submission.

The petition further addressed the contention that cryptocurrencies may be regulated in the same manner as conventional securities, stating that the majority of cryptocurrencies do not reflect ownership interests or pay dividends in the same way as shares can.

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Jeewan Singh is CryptoShrypto’s content writer and a seasoned writer with over two years of experience in writing about Indian Securities Market. Jeewan's participation in Blockchain and Cryptocurrency started in late 2020, and he hasn't looked back since. The technical and economic outcomes of cryptocurrency are what spark his curiosity, and he keeps one eye on the market.


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