Coinbase Supports Ripple in SEC Lawsuit

America’s largest cryptocurrency exchange, 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 plans to join forces with the Blockchain Association (a crypto advocacy group), SpendTheBits (a payment app utilizing XRP), and attorney John Deaton to contest the SEC's allegations that Ripple illegally sold XRP as a security.

The lawsuit, which began in 2020, alleges that XRP is a security and that Ripple violated federal securities laws by selling it to U.S. investors. However, Ripple has since presented favorable evidence in court, weakening the SEC’s position.

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

The exchange also contends that the SEC has been inconsistent in its rulings, having classified 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, noting that most cryptocurrencies do not offer ownership rights or dividends like traditional securities.

Following Coinbase's support statement, XRP’s price experienced a slight uptick.

1-Hour Chart of the XRP/USDT Pair on Binance at 07:55 AM on 01/11/2022

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