While the startup Ripple (XRP) is still suing the US regulator SEC (Security and Exchange Commission)Cryptocurrency exchange Coinbase has just announced that it has asked to join the company in its two-year legal battle.
On Twitter, Paul Grewal, general counsel for Coinbase, confirmed that the cryptocurrency exchange has filed an “amicus curiae” request with the court and Judge Torres in charge of the Ripple/SEC lawsuit.
This request, if accepted by the judge, should allow Coinbase to join forces with Ripple (XRP) in this lawsuit where the SEC believes that the XRP token is a stock/financial security of Ripple Labs and not just a crypto exchange token such as bitcoin (BTC).
The US administration is also accused of an illegal sale of $1.3 billion worth of XRP tokens involving Ripple executives, including its CEO Brad Garlinghouse.
“Earlier today, Coinbase asked Judge Torres for permission to file an amicus memo in the SEC case against XRP.
Our point is quite simple: this is a textbook case that shows how important fair notice is to any reasonable due process notice under the law.
One of the fundamental procedural guarantees guaranteed by our Constitution is that public authorities cannot condemn conduct as breaking the law without fair notice that such conduct is unlawful. By suing sellers of XRP tokens after they made public statements about the legality of these transactions, the SEC lost sight of this fundamental principle. Coinbase General Counsel tweeted.
Earlier today, @coinbase applied to Judge Torres for permission to file an amicus memo in an SEC case over XRP. Our point of view is quite simple: this is a textbook example of how important it is to give any reasonable notice of due process in accordance with the law fairly. 1/3 pic.twitter.com/qhSSGrNgJK
— paulgrewal.eth (@iampaulgrewal) October 31, 2022
As Coinbase General Counsel points out, Ripple is currently being sued for torts related to the sale of its XRP token, while there has been no clear legal framework regarding the status of cryptocurrencies in recent years.
Despite the tens of millions of dollars in legal fees that Ripple will have to pay, the blockchain startup is determined to go all the way to get the US administration to bend in this lawsuit, which could then serve as case law if Ripple were to come along to win it.
Recently, Ripple lawyers also highlighted the fact that there is no “investment contract” that entitles investors or obliges the issuer to act in their best interests, and therefore XRP token cannot be considered a financial security. article on this topic.
Coinbase’s entry into the SEC lawsuit is a significant asset that could further worry SEC lawyers, who are now trying to buy time to keep this lawsuit going as long as possible to discourage the opposing side.
The price of XRP on Binance is currently around $0.46.
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