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Coinbase Inc. joined a growing list of cryptocurrency supporters who have filed papers in favor of Ripple in the blockchain company's legal battle with the U.S. Securities and Exchange Commission.
Coinbase requested U.S. District Judge Analisa Torres to allow a jury to hear Ripple's claim that the business was not informed that XRP was an unregistered securities, in a proposed amicus brief. In the request, Coinbase claims that the SEC has not kept up with the rapidly evolving cryptocurrency sector. According to the filing, the current SEC administration has attempted to broaden the SEC's jurisdiction over the cryptocurrency industry through ad hoc enforcement actions that claim retroactively that already-trading digital assets previously perceived by the market to be commodities regulated by the Commodity Futures Trading Commission ("CFTC") or other non-securities are actually securities subject to SEC regulation.
Following the exchange's CEO Brian Armstrong's invitation for "the entire sector to engage more," according to a Thursday U.Today story, a request to submit an amicus curiae brief has now been made.
However, Coinbase CEO Brian Armstrong was made fun of by Ripple CEO Brad Garlinghouse, who implied that Armstrong had been endorsing tribalism while fighting it. According to a Monday U.Today article, XRP Ledger (XRPL) may soon allow native non-fungible coins (NFTs).
Ripple is garnering much support recently
Many crypto firms have filled amicus briefs in support of ripple in their lawsuit versus SEC. The latest one to join the team of firms supporting SEC. A second request in one week for District Judge Analisa Torres to file an amicus brief in support of Ripple's opposition to the U.S. Securities and Exchange Commission's motion for summary judgment has been made by Cryptillian Payment Systems, an online cryptocurrency service for retail customers and commercial retail businesses.
The digital wallet services offered by Cryptillian support six cryptocurrencies in total, including XRP. According to the business, the token is really the second-most preferred choice among its clients. The business claims to have expended a lot of work and money integrating the cryptocurrency linked to Ripple. Between cardholders and retailers, Cryptillian reportedly handled "tens of thousands" of XRP tokens. It seeks to present actual usage statistics for the XRP cryptocurrency to the court.
A look into the SEC Vs Ripple case
The cryptocurrency business, which operates in a regulatory gray area in the U.S., might face wide-ranging legal repercussions as a result of the Ripple case.
The creators of Ripple established XRP in 2012. In December 2020, the San Francisco-based corporation and its current and past senior executives were sued by the SEC on charges that they had been selling unregistered securities worth $1.3 billion since the token's inception. Since XRP was immediately delisted from U.S. exchanges like Coinbase, the lawsuit "generated immediate collateral losses to market participants," the business said. Both SEC and Ripple have requested the judge to determine that XRP is a security, despite requests from both parties.
The judge may decide to restrict the topics that are presented to the jury or award either party a victory before the matter goes to trial. Meanwhile, Torres has given input to a number of parties, including a group of XRP holders who are pleading with her to decide in favor of Ripple. Additionally, Torres has received papers from businesses that claim to use XRP technology, a cryptocurrency industry association, and a charity legal organization that claims to assist clients against SEC "overreach." A lobbying organization supported by Andreessen Horowitz called the Crypto Council for Innovation is one of many who is still seeking approval to submit papers.
However, Miles Jennings, General counsel and head of decentralization at Andreessen Horowitz, still is not positive on the outcome of the case, saying that Ripple itself sold XRP to investors.