Coinbase Inc, a cryptocurrency exchange, has shown support for Ripple in the blockchain firm’s legal battle with the Securities and Exchange Commission, following a growing number of bitcoin supporters who have filed papers in the case.
— Watcher.Guru (@WatcherGuru) October 31, 2022
Coinbase asked U.S. District Judge Analisa Torres in a proposed amicus brief on Monday to allow a jury to hear Ripple’s allegation that the business lacked notice that XRP, currently the world’s sixth-largest crypto by market value, was not registered security. The Ripple case has vast potential legal ramifications for the cryptocurrency sector, which operates in a regulatory grey area in the United States.
— Moon Lambo (@MoonLamboio) November 1, 2022
XRP was founded in 2012 by the founders of Ripple. In December 2020, the SEC sued the San Francisco-based business and its current and previous CEOs, saying they conducted a $1.3 billion unregistered securities sale since the token’s inception.
Ripple has requested that the court declare that XRP is not a security, while the SEC has requested that the court decide that it is. There is a chance the judge will rule in favour of one party without going to trial, or they may opt to limit the matters that the jury will hear.
Meanwhile, Torres has permitted many entities to weigh in, along with a group of XRP holders who wanted her to decide in favour of Ripple. Torres has also accepted papers from businesses that claim to use XRP technology, a crypto industry association, and a legal nonprofit that claims to assist clients against SEC “overreach.”
The Crypto Council for Innovation, backed by Andreessen Horowitz, is across several currently waiting for approval to file briefs.