Coinbase files application to support Ripple in SEC case

Coinbase is again joining Ripple in its lawsuit against the SEC, receiving approval from a federal judge. 

The Tweet reporting the news is from earlier today, signed Watcher.Guru, which reads: 

“Federal judge grants #Coinbase’s request to file an application to support #Ripple in the SEC case.”

Thus, good news for Ripple, to which Coinbase again lends its support in the SEC case. Despite the declining value of XRP, down 1% with the altcoin standing at about $0.4565, while registering an increase in the past 30 days of 0.5%, Coinbase with this latest news restores its confidence in the crypto. 

Indeed, the fact that the federal judge granted Coinbase’s application for support, and that Coinbase had already filed a legal brief in favor of Ripple, are all very positive news for XRP. 

In that, they indicate that the exchange could re-list the token, should the outcome be positive for Ripple. Moreover, given the various positive developments in recent months for Ripple, it seems that it has a very good chance of securing a favorable settlement with the SEC.

SEC v. Ripple: here’s what had happened 

From the most recent news and what Ripple CEO Brad Garlinghouse was already claiming, there would be good reason to think that the long battle between Ripple and the US Securities and Exchange Commission is drawing to a close. 

Indeed, in recent times, Ripple’s native token XRP has seen a surge thanks to increased speculation about a positive resolution of the case expected by year-end.

In October, Garlinghouse had told attendees at the DC Fintech Week conference that he expected the case to be concluded during the first half of 2023, while admitting that it is difficult to make an exact estimate.

But let’s take a step back, what is at the root of the SEC’s lawsuit against Ripple?

Apparently, the US regulator’s action was initially filed in December 2020, accusing Ripple of conducting an unregistered securities sale via the XRP token. 

The matter has definitely gone on for a long time. Garlinghouse said it is an iconic case for the United States and the entire cryptocurrency industry, adding that it will be fully briefed and presented to the court by mid-November.

In addition, Garlinghouse had also referred to former SEC Division Director William Hinman‘s 2018 speech about Ethereum not being a security, reporting that the judge had ordered the SEC to hand over details several times. 

The first victory for Ripple came this past 29 September, as they were handed these elusive transcripts once and for all.

The fintech administrator had stated that Ripple would consider a settlement with the SEC, provided XRP was not classified as a security.

Not just Coinbase, here are all the supporters of the Ripple vs SEC case

As already anticipated, the exchange company Coinbase was among the first to support Ripple in the SEC case. In fact, prior to the application for support, Coinbase had already filed an “amicus brief” in favor of Ripple.

Essentially, the amicus brief submitted by Coinbase is a legal document provided to a court, containing advice, or in some cases may even be information about a case, that is drafted by an organization or individual who is not a party to the case and acts as a “friend” of the court.

However, Coinbase has not only defended and is defending Ripple because it cares about its lawsuit and supports its motives, but mainly because Coinbase has also lost a lot of money in reflection of the lawsuit. 

In fact, since the affair began, the market value of XRP has dropped dramatically, and many exchanges have taken Ripple off the platform, causing Coinbase customers to lose a lot of money as a result. 

As Coinbase itself had explained, until the SEC engages in regulation for the cryptocurrency, the defense of fair notice is a constitutionally required safeguard against arbitrary and surprising cryptocurrency enforcement actions. 

Indeed, Coinbase argues that, in the absence of such regulations, preventing Ripple’s defense from being heard at trial will not only undermine Ripple’s ability to avail itself of a defense afforded by basic principles of due process, but will also give the SEC no incentive to engage in the regulatory work that the cryptocurrency industry and its customers need. 

Following Coinbase in Ripple’s cause, we find a veritable army of supporters for the crypto. Indeed, all those who have sided with Ripple have been referred to as “the XRP army” or “the Ripple army.”

These include the Blockchain Association, the US-based cryptocurrency advocacy group that has sided with Ripple Labs in its ongoing legal battle against the Securities and Exchange Commission. 

Specifically, the Blockchain Association argues that the case could be very important for the future of the cryptocurrency industry.

The truth is that many believe Ripple will win the case and the price will skyrocket once it beats the Securities and Exchange Commission. Throughout this time, thanks to the creation of groups, chats and meetings, a real community has been created around Ripple, which more than a few times has managed to control the price of the token. So, it seems that Ripple, together with its cohesive army of followers, may have the upper hand.