Coinbase Will Be Ripple’s Ally In The Battle With The SEC

Cryptocurrency exchange Coinbase has asked the Securities and Exchange Commission for permission to write a brief in the current lawsuit between the SEC and Ripple Labs, claiming that the lack of clarity in crypto enforcement proceedings is placing US exchanges at a disadvantage.

Coinbase has joined the Blockchain Association, SpendTheBits, and lawyer John Deaton in attempting to strengthen Ripple’s case against the SEC, which sued Ripple in late 2020 on charges that it marketed XRP as unregistered securities.

In its brief, Coinbase claims that the Constitution requires government authorities to provide fair notice that activity is unconstitutional before taking action. In other words, before the SEC may pursue an enforcement action, the public must know that the practice is prohibited. The filing said:

“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.”

After allowing XRP to trade for years, Coinbase alleges the SEC sued XRP token sellers. According to the exchange, the regulator issued public declarations stating that long-standing tokens were not deemed securities.

Coinbase requests that the court dismiss the SEC’s motion for summary judgment, arguing that the absence of regulation and purported contradictory signals failed to provide fair notice.

Furthermore, the business claims that individuals attempting to comply suffer considerable losses due to the SEC’s lack of transparency. When the SEC filed its claims against Ripple’s XRP currency, numerous platforms froze XRP trading, causing the price to fall and causing Coinbase users to suffer.

“In addition, existing SEC registration requirements for national securities exchanges are currently unsuitable to the way digital asset platforms operate.

Existing SEC requirements, however, only allow broker-dealers to be members of registered securities exchanges, meaning that retail customers can only trade assets on exchanges indirectly by using the services of broker-dealers that charge transaction fees and add intermediation risks that could be avoided on digital asset trading platforms, again to the benefit of customers.”

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

Join us to keep track of news: https://linktr.ee/coincu

Website: coincu.com

Harold

CoinCu News