Coinbase Supports Ripple in SEC Lawsuit

U.S. crypto exchange giant Coinbase has announced its decision to support Ripple in its ongoing lawsuit against the U.S. Securities and Exchange Commission (SEC).

Coinbase has filed a motion with the court requesting to support Ripple in its legal battle with the SEC. The exchange, alongside Blockchain Association (a crypto advocacy group), SpendTheBits (a payment app using XRP), and attorney John Deaton, aims to counter the SEC's allegations that Ripple unlawfully sold XRP as a security.

The lawsuit, which began in 2020, centers around the SEC’s claim that XRP constitutes a security and that Ripple violated federal securities laws by selling it to U.S. investors. However, Ripple has since presented evidence and arguments that have weakened the SEC’s position in court.

Coinbase and its allies will focus on whether the SEC provided timely notice before taking legal action, arguing that the SEC has yet to issue clear guidelines for the crypto sector.

The exchange also contends that the SEC has been inconsistent in its rulings, treating Bitcoin and Ethereum as non-securities while accusing Ripple and other crypto projects of being securities in 2022.

Coinbase's court filing further argues that the crypto industry should not be regulated like traditional finance, as most cryptocurrencies do not offer ownership rights or dividends like securities.

Following Coinbase's announcement of support, XRP’s price saw a slight increase.

1H XRP/USDT Chart on Binance as of 07:55 AM, 01/11/2022

Recently, Coinbase has actively engaged in legal battles to protect the interests of the crypto industry in the U.S., notably by sponsoring the lawsuit against the U.S. Department of the Treasury’s sanctions on Tornado Cash.