Crypto exchange Coinbase has submitted Legal counsel backing Ripple (XRP) claimed the SEC lawsuit cost retailers $15 billion.
According to the exchange, the SEC action forced the US-based exchange to delist XRP, resulting in heavy losses for retail customers as the coin’s market capitalization decreased.
The US-based crypto firm has repeatedly urged the SEC to lead the crypto space, it added. However, regulators focused on regulating the industry through individual enforcement actions.
“Without a regulatory framework governing digital assets, parties like Ripple must be allowed to pursue a fair notice defense when facing surprise enforcement actions like this one. Coinbase thinks otherwise.”
Coinbase added that the SEC has subjected Ripple to “extensive enforcement scrutiny” while other companies offering similar products or services have been excluded. The regulator’s existing registration requirements are inadequate for the way digital asset platforms operate, he added:
“However, existing SEC requirements only allow broker-dealers to be members of a registered stock exchange. can only be used to indirectly trade assets on exchanges, which are avoided on digital asset trading platforms for the benefit of customers.”
Coinbase Chief Legal Officer Paul Grewal Said:
“By suing the seller of the XRP token after issuing a public statement stating that these transactions were legal, the SEC lost sight of this fundamental principle.”
Crypto Community Bands Unite For Ripple
Aside from Coinbase’s court filings in favor of Ripple, several crypto-related companies, individuals and entities have also filed motions in favor of the beleaguered payment company.
XRP Pro-Lawyer John Deaton submitted Amicus brief on behalf of XRP holders to the SEC’s request for summary judgment. Deaton said the SEC is using the lawsuit as a test case to expand its jurisdiction into the crypto space.
“While the SEC seizes jurisdiction, millions of XRP holders are being held hostage as collateral damage. Adopted a litigation position to further a desired goal, not from.”
Crypto advocacy group Blockchain Association submitted The October 28th Amicus Brief stated that SEC Chairman Gary Gensler’s views could devastate the crypto industry.
Other crypto-related organizations such as venture capital firm Valh Capital and the Crypto Council for Innovation have also submitted briefs Supports Ripple.
SEC file for editing Hinman documents
Meanwhile, the SEC recently won a minor victory as Judge Sarah Netburn. accept Two Redaction Requests on Former Secretary Bill Hinman’s Documents.
The committee would like to compile two drafts of Hinman’s June 2018 speech containing pending decisions.
The SEC recently released Hinman’s documents after six court rulings ordered Ripple to release Hinman’s documents.