Share this article
Coinbase Files to Support Ripple Against SEC Case
The crypto exchange joins a trade group and other groups in arguing the SEC's case threatens the broader industry.
By Nikhilesh De
Updated Nov 1, 2022, 4:44 p.m. Published Oct 31, 2022, 11:33 p.m.
Make us preferred on Google
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.
STORY CONTINUES BELOW
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.
Coinbase similarly argued that the SEC has been inconsistent about its enforcement approach, which creates "uncertainty" for companies in the sector.
Read More: SEC, Ripple Call for Immediate Ruling in Suit Over Whether XRP Sales Violated Securities Laws
"Ripple and others have been the subject of extensive enforcement scrutiny while others – with nearly identical products or services – have apparently been subject to none," the filing said.
Much of the filing focuses on this argument, as well as maintaining the view that the regulator has not engaged in any rulemaking that would "provide the regulatory clarity" companies want.
The filing also targeted the argument that crypto could be treated like traditional securities, saying most cryptocurrencies do not represent ownership stakes or pay dividends the way shares might.
"In addition, existing SEC registration requirements for national securities exchanges are currently unsuitable to the way digital asset platforms operate," the filing said. "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."
More For You
Pudgy Penguins is building a multi-vertical consumer IP platform — combining phygital products, games, NFTs and PENGU to monetize culture at scale.
What to know:
Pudgy Penguins is emerging as one of the strongest NFT-native brands of this cycle, shifting from speculative “digital luxury goods” into a multi-vertical consumer IP platform. Its strategy is to acquire users through mainstream channels first; toys, retail partnerships and viral media, then onboard them into Web3 through games, NFTs and the PENGU token.
The ecosystem now spans phygital products (> $13M retail sales and >1M units sold), games and experiences (Pudgy Party surpassed 500k downloads in two weeks), and a widely distributed token (airdropped to 6M+ wallets). While the market is currently pricing Pudgy at a premium relative to traditional IP peers, sustained success depends on execution across retail expansion, gaming adoption and deeper token utility.
Más para ti
Crypto bill clears U.S. Senate milestone as effort advanced through first committee
The market structure legislation for the first time advanced beyond a committee, setting up the next steps that could end with a vote of the overall chamber.
Lo que debes saber:
- After a brief series of amendments were rejected, the U.S. Senate Agriculture Committee voted to advance its version of the crypto market structure bill to its next phase.
- That a high-water mark for market structure legislation in the Senate, after years of negotiation and lobbying, but the bill still needs to same treatment at the Senate Banking Committee.
- It's also lacking Democratic support that would be required for an eventual passage in the overall Senate, though Democrats remain at the negotiating table.
