America’s largest cryptocurrency exchange, Coinbase, has unexpectedly announced its support for Ripple amid an ongoing legal battle with the Securities and Exchange Commission (SEC), which could get the final word on a ruling by the first half of this year. 2023.

Coinbase supports Fluctuation:

In a series of tweets on October 31, Paul Grewal, Coinbase’s chief legal officer, announced that the crypto-trading firm had asked US District Judge Annalisa Torres for permission to file an amicus brief, also known as a “friend of the court.” In a lawsuit filed by the US Securities and Exchange Commission against Ripple.

Almost two years ago, the Securities and Exchange Commission (SEC) filed a lawsuit against Ripple, former CEO Chris Larsen and current CEO Bradley Garlinghouse, alleging they raised $1.3 billion by offering unregistered cryptocurrency securities, XRP.

The high-profile lawsuit has moved through a flurry of procedural motions since then, and the parties recently filed their motions for speedy judgment.

Citing its unique perspective on the issues at hand and the lack of a regulatory framework governing digital assets, Coinbase emphasized that parties like Ripple should be allowed to pursue the protection of fair notice in the matters they face.

One of the basic due process protections guaranteed by the US Constitution is that officials cannot denounce a violation of law without giving fair notice that such conduct is illegal, echoing a common complaint that the company did not provide clear guidance to the SEC. For companies focusing on crypto.

The leave application states:

By suing XRP sellers after making public statements that those transactions were legitimate, the SEC lost sight of this basic principle.

Coinbase continued to note that the majority of digital assets traded on the exchange are shares with publicly listed companies that do not represent equity or payment income for investors.

Tell Grewal:

Current National Securities and Exchange Commission registration requirements are currently ill-suited to the way cryptocurrency platforms operate.

He added:

The end result was very costly for American innovation in this new industry.

A response from the court is awaited as to whether Coinbase will agree to the request or not.

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