Coinbase Has Just Filed To Support Ripple In SEC Case

October 31, 2022 11:12 pm Comments

In an unexpected move, Coinbase has just petitioned a federal court in order to file an amicus brief in the ongoing SEC V. Ripple lawsuit.

In the filing, Coinbase stated that the SEC’s lack of rulemaking for the crypto industry and for failure to give a fair notice before bringing enforcement is the reason why they are filing to be a friend of the court.

The Chief Legal Officer of Coinbase would tweet “Earlier today, Coinbase asked Judge Torres for permission to file an amicus brief in the SEC case over XRP. 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.”

Besides Coinbase, the Blockchain Association, John Deaton, SpendTheBits, and a few others have also filed an amicus brief.

Coinbase’s backing has caught many XRP holders by surprise considering in 2021 Coinbase delisted XRP due to the SEC’s lawsuit.

Yahoo News shared these details:

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.

Coinbase joins the Blockchain Association, an industry lobbyist group, SpendTheBits, a crypto payments app that uses XRP and John Deaton, a lawyer, in hoping to shore up Ripple’s case against the SEC, which sued Ripple at the end of 2020 on allegations it sold XRP as an unregistered security.

The exchange highlighted whether the SEC provided “fair notice” prior to bringing its enforcement action, taking a dig at the common industry complaint that the regulator has not provided clear guidance to businesses in 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.

Cointelegraph added these details:

United States-based crypto exchange Coinbase has become the latest organization to stand behind Ripple Labs in its legal battle against the Securities and Exchange Commission (SEC), which could wrap up as soon as the first half of 2023.

Paul Grewal, Coinbase’s chief legal officer in a series of tweets on Oct. 31 said the exchange had asked the presiding judge for permission to file an amicus brief, saying the case was a “textbook” definition of “just how critical fair notice is.”

Grewal added that a fundamental protection under the U.S. Constitution is that authorities can’t “condemn conduct as a violation of law without providing fair notice that the conduct is illegal.”

Join the conversation!

We have no tolerance for comments containing violence, racism, profanity, vulgarity, doxing, or discourteous behavior. If a comment is spam, instead of replying to it please click the icon below and to the right of that comment. Thank you for partnering with us to maintain fruitful conversation.