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

Coinbase Supports Ripple:

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

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

The high-profile lawsuit has gone through a flurry of procedural motions since then, and the parties recently filed their petitions for an expedited ruling.

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

One of the fundamental due process protections guaranteed by the US Constitution is that authorities cannot condemn conduct as a violation of the law without giving fair notice that such conduct is illegal, the company added, echoing a common complaint that the SEC has not provided clear guidance to companies that Focus on crypto.

The leave application stated:

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

Coinbase continued to note that the majority of digital assets traded on the exchange do not represent equity or pay returns to investors in the way that shares with publicly listed companies might.

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Tell Grewal:

The current National Securities and Exchange Commission registration requirements are not currently appropriate for the way cryptocurrency platforms operate.

He added:

The end result is far too expensive for American innovation in this new industry.

Now it remains to wait for a response from the court whether it will agree to Coinbase’s request or not.

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