15 Feb 2025

light mode

Coinbase supports Ripple in the confrontation with the SEC

Coinbase supports Ripple in the confrontation with the SEC

Cryptocurrency exchange Coinbase voiced support for Ripple in the blockchain company’s legal battle with SEC that lasted nearly two years. The company filed a request for an amicus curiae or “friends of the court” rule and formally applied to the US District Court.

The confrontation between Ripple and the SEC plays a special role for the future of the crypto industry both in the US and in the world. The regulator officially sued Ripple and its executives in December 2020.

They claimed that the Ripple’s XRP token was classified as securities and was not officially registered. According to the Commission, the crypto exchange violated federal securities laws in conducting unregistered securities sales that generated $1.3 billion. 

However, Ripple founders do not agree with SEC findings and believe that the regulator’s actions have caused direct and collateral damage not only to the company itself, but also to users. Following the SEC’s action, crypto exchanges in the U.S. began delisting XRP on their platforms, so the exchange has suffered serious reputational damage.

The SEC has been inconsistent with how it polices the crypto industry, creating “uncertainty” for companies in the space. And frequent high-profile statements by Chairman Gary Gensler have led to the fact that the regulator considered a lot of crypto platforms to be a major threat to the industry. This was the reason why Ripple got supporters who are ready to defend the exchange in court. 

The platform was initially supported by the non-profit industry organization Blockchain Association, lawyer John Deaton and the SpendTheBits mobile app.On October 31, Coinbase come out to support the fintech company and filed a request for an Amicus Brief in support of Ripple's “fair notice defense”.

In the official document, the platform representatives pointed out a number of reasons why the existing securities legislation is not keeping up with the fast-growing ecosystem of virtual assets and the ways of selling, exchanging and storing them. This allows industry representatives to criticize the regulator, whose statements and actions can not always be considered correct: 

Instead of engaging in rule-making, the current SEC administration has sought to expand jurisdiction over the cryptocurrency industry through special enforcement measures.

The report states that the SEC has often made retrospective decisions regarding assets, labeling them regulatory securities.  However, the absence of a regulatory framework, combined with sudden enforcement action by the Commission, creates uncertainty in the market and disadvantages for US crypto exchanges, which “compete with offshore platforms in jurisdictions where there is no risk of surprise from regulators”.

In addition, the authors of the statement draw the attention of the court to the fact that in 2018 SEC representatives made a number of statements according to which mature and long-traded cryptocurrencies are not considered as securities. In particular, such conclusions could be drawn from the speech of William Hinman, Director of the SEC's Division of Corporation Finance.

Coinbase is confident that cryptocurrencies are an important element of the modern financial market, while the SEC has not yet created appropriate guidance on crypto regulation. As far as law enforcement goes without rule-making, this tactic only hurts the industry. But the authors of the report continue to expect the Commission to take steps towards the crypto sphere:

Coinbase remains hopeful that the SEC will seize the opportunity to engage with public stakeholders to fashion pragmatic cryptocurrency regulations.

The content on The Coinomist is for informational purposes only and should not be interpreted as financial advice. While we strive to provide accurate and up-to-date information, we do not guarantee the accuracy, completeness, or reliability of any content. Neither we accept liability for any errors or omissions in the information provided or for any financial losses incurred as a result of relying on this information. Actions based on this content are at your own risk. Always do your own research and consult a professional. See our Terms, Privacy Policy, and Disclaimers for more details.

Articles by this author
AI Is Making Crypto Scams Smarter—Insights from Chainalysis 2024

AI Is Making Crypto Scams Smarter—Insights from Chainalysis 2024

The 2024 Chainalysis report confirms that AI-driven fraud is on the rise, with crypto scammers cashing in at least $9.9 billion through advanced deception tactics.

The Coinomist
North Korean Hackers Infiltrate GitHub & NPM to Steal Crypto

North Korean Hackers Infiltrate GitHub & NPM to Steal Crypto

Lazarus Group, a North Korean hacking unit responsible for numerous cyber attacks, has launched a new campaign targeting software developers and crypto wallets.

Anahit Avetisyan
Solana Outpaces Rivals as App Revenues Surge in Crypto Revival

Solana Outpaces Rivals as App Revenues Surge in Crypto Revival

Messari reports that Solana-based apps saw an unbelievable 213% revenue spike, making Solana the top blockchain for app-generated earnings.

Anton Kryshtal
HashFlare Founders Admit to $575M Crypto Fraud Scheme

HashFlare Founders Admit to $575M Crypto Fraud Scheme

A long-anticipated court hearing in the U.S. has concluded with HashFlare co-founders Sergei Potapenko and Ivan Turogin admitting to charges of wire fraud.

The Coinomist
Weekly Analysis of BTC, ETH, and the Stock Market (Feb 10, 2025)

Weekly Analysis of BTC, ETH, and the Stock Market (Feb 10, 2025)

An overview of BTC, ETH, XAUT, and S&P500 charts, and the current cryptocurrency market dynamics.

Artem Khomenko
Weekly Analysis of BTC, ETH, and the Stock Market (Feb 3, 2025)

Weekly Analysis of BTC, ETH, and the Stock Market (Feb 3, 2025)

An overview of BTC, ETH, XAUT, and S&P500 charts, and the current cryptocurrency market dynamics.

Artem Khomenko
Weekly Analysis of BTC, ETH, and the Stock Market (Jan 27, 2025)

Weekly Analysis of BTC, ETH, and the Stock Market (Jan 27, 2025)

An overview of BTC, ETH, XAUT, and S&P500 charts, and the current cryptocurrency market dynamics.

Artem Khomenko
How to Bump a Transaction in the Bitcoin Network

How to Bump a Transaction in the Bitcoin Network

Sometimes, Bitcoin transactions can get “stuck,” especially if a low fee was set. In such cases, you might wonder: Why is my Bitcoin transaction stuck?

bitOn
Inside Cryptocurrency Farms: How Digital Coins Are Mined

Inside Cryptocurrency Farms: How Digital Coins Are Mined

Cryptocurrency farms and mining have evolved significantly since Bitcoin launched in 2009. To understand their growth, it helps to look at the broader history of resource extraction.

The Coinomist
From Bulls to Ballers — Why Celebrities Are Flocking to Crypto

From Bulls to Ballers — Why Celebrities Are Flocking to Crypto

Trump’s meme coin isn’t an outlier—it’s part of a broader trend. Back in 2021, celebrities were minting NFTs, and by 2024, they had moved on to personal token launches. The connection between fame and crypto has been growing for years, even if many failed to see it.

Vlad Vovk
Which Macroeconomic Factors Make Crypto Rise or Fall? 

Which Macroeconomic Factors Make Crypto Rise or Fall? 

It happens when you check the market and crypto prices are up or down for no obvious reason. Then you do some research and find out that there are actually reasons outside the crypto space.

Anahit Avetisyan
How Blockchain Helps Combat Disinformation

How Blockchain Helps Combat Disinformation

Fake news has become a global issue, shaping public opinion, fueling social tensions, and even influencing political decisions. With the rise of social media, the spread of misinformation has accelerated, making it increasingly difficult to regulate. However, blockchain technology offers a promising solution in the fight against fake news.

Daryna Nesterenko
Trading Psychology: How to Avoid Falling Victim to Your Own Biases

Trading Psychology: How to Avoid Falling Victim to Your Own Biases

The most successful traders aren’t always the smartest. More often, those who excel are the ones who understand psychological traps, manage their emotions, and maintain rationality under pressure.

Vlad Vovk
SBF’s Prosecutor Quits – What It Means for Crypto Crime

SBF’s Prosecutor Quits – What It Means for Crypto Crime

Danielle Sassoon, Acting U.S. Attorney for the Southern District of New York, has resigned, making headlines this week. And you’ve definitely heard of one of her biggest “client” names.

Anahit Avetisyan
Trump’s Crypto Summits: Pragmatic Move or Regulatory Mess?

Trump’s Crypto Summits: Pragmatic Move or Regulatory Mess?

What’s the best way to figure out how the crypto industry needs to be regulated in the U.S.? Donald Trump is considering different options.

Anahit Avetisyan
MORE
«Mass Adoption Isn’t About Tech – It’s About Perception». Bitmedia Founder Matvii Diadkov – About RWA, Web3, And Marketing

«Mass Adoption Isn’t About Tech – It’s About Perception». Bitmedia Founder Matvii Diadkov – About RWA, Web3, And Marketing

Matvii Diadkov, founder of Bitmedia, shared with us in an exclusive interview his expert insights on Web3 adoption, impact of GameFi and community-centering tendencies in the market.

The Coinomist
“Satoshi is CIA”: Swedish crypto bro opens up about his Bitcoin journey

“Satoshi is CIA”: Swedish crypto bro opens up about his Bitcoin journey

The first crypto craze took place almost a decade ago. Overnight, many people found out about Bitcoin and its underlying technology, blockchain.

Lesia Dubenko
MORE