Ripple Labs has been battling the SEC for nearly two years. A lawsuit was filed against them for unlawful sales of $1.3 billion worth of XRP tokens. According to the SEC, XRP is a security token that should have been registered before sales began.
Coinbase and some other blockchain-crypto organizations requested an amicus brief, a legal document allowing a party not involved in a court case to advise the court on the matter.
Judge Analisa Torres granted the requests for these exchanges. According to the report, they have until November 18 to submit formal briefs.
#XRPCommunity #SECGov v. #Ripple #XRP Judge Torres has granted motions to file Amici Briefs. By November 18, 2022, the Association, six XRP holders, Coinbase, the CCI, Valhil, Cryptillian, Veri DAO, Reaper Financial, InvestReady, NSEI and Paradigm must file their formal briefs. pic.twitter.com/rb9HdmYVy7
— James K. Filan 🇺🇸🇮🇪 126k (beware of imposters) (@FilanLaw) November 14, 2022
Ripple has previously been fighting the SEC alone, but several related organizations have begun to come out to support and help win the lawsuit. Brad Garlinghouse, the CEO of Ripple Labs, recently announced on Twitter that the company currently has 12 backers.
Coinbase’s Chief Legal Officer, Paul Grewal, listed several reasons why the backlash against Ripple Labs is unjustified.
He stated,
“One of the fundamental due process protections guaranteed by our Constitution is that government agencies cannot condemn conduct as a violation of law without providing fair notice that the conduct is illegal. By suing sellers of XRP tokens after making public statements signalling that those transactions were lawful, the SEC has lost sight of this bedrock principle.”
Documents pertaining to the former SEC director’s 2018 speech were discovered last month. The documents confirm the director’s statement that Bitcoin and Ethereum are not securities and are not subject to the Commission’s laws.
There are optimistic rumours that Ripple Labs will win its case against the SEC. The outcome of this battle against the SEC will set a precedent for other token issuers facing the same challenge.
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