According to the exchange, the SEC’s move compelled U.S.-based exchanges to delist XRP, resulting in large losses for individual investors as the coin’s market capitalization declined.
Coinbase has submitted an amicus brief in Favour of Ripple (XRP), alleging that retail traders lost $15 billion due to the SEC’s case.
According to the exchange, the SEC’s move compelled U.S.-based exchanges to delist XRP, resulting in large losses for individual investors as the coin’s market capitalization fell.
However, the SEC was focused on regulating the market via individual enforcement proceedings. The U.S.-based crypto business reiterated that it has consistently requested the SEC to lead the crypto field.
“In the absence of a regulatory framework controlling digital assets, Coinbase thinks that parties such as Ripple must be entitled to seek fair notice arguments in situations when they are confronted with unexpected enforcement proceedings such as these.”
Coinbase said that the SEC has treated Ripple to “intense enforcement attention,” while other companies with equal goods or services were excluded. It noted that the regulator’s current registration rules were inappropriate for the manner in which digital assets platforms functioned and added:
Existing SEC restrictions only permit broker-dealers to be members of registered securities exchanges, which means that retail clients may only trade assets on exchanges indirectly by utilizing the services of broker-dealers, who impose transaction fees and add intermediation risks that might be avoided on digital asset trading platforms, again to the advantage of customers.
Paul Grewal, chief legal officer of Coinbase, stated: “The SEC has lost sight of this fundamental principle by suing sellers of XRP tokens after indicating in public statements that these transactions were legal.”
In addition to Coinbase’s court petition in Favour of Ripple, a number of crypto-related companies, people, and organizations have filed papers in support of the troubled payment system.
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