The Cryptocurrency exchange company Coinbase will be helping Ripple labs company by filing the petition at a federal court in the US. The federal court in the US have been allowed for accompanying Ripple Labs as a friend of the court also called an “amicus” in the judicial language for all the ongoing lawsuit in the US between the U.S. Securities and Exchange Commission (SEC) and the founder of XLR tokens, the Ripple Labs.
With this move, the crypto company Coinbase has joined the Blockchain Association in the US which is also seen as the industry lobbyist group along with the crypto payments app, “SpendTheBits” which uses XRP as a leading token from its platform.
The Blockchain Asociacion along with Coinbase the rest of the appellate and John Deaton, who is a lawyer of ripple labs, Deaton have been hoping to get the victory from Ripple’s case against the SEC. Ripple labs, an XRL token was sued by the SEC at the end of 2020 with the allegations that Ripple labs were selling XRP as unregistered security in the market.
What’s the case against Ripple?
The SEC wants to prove that the ripple contrary to other crypto assets like bitcoins or the ether is security which means it can be sued as a financial instrument and can be sued for all the monetary options in the economy. As per the experts in the crypto market. This is not the case and the cryptocurrencies are mined by the tech developers through the process of solving some complex puzzles the ones who will first solve these puzzles are just given some pay as the individual behind solving these puzzles and these crypto assets get the value because of its limited availability as of now in the market and not because of its building process
The newly filed petition documents by Coin base company in collaboration with ripple labs targeted the argument that crypto could be considered and traded just like traditional securities, along with that most cryptocurrencies do not inherit in themselves the ownership stakes or pay any type of dividends way any share derivatives provides in the monetary market.
Who is Coinbase?
The company Coinbase is an American cryptocurrency exchange company who has been founded by Brian Armstrong in mid-2012 with the vision of making the payments systems completely decentralized and transactions to all global users against the present practice of isolated banking systems payment and monetary transaction methods in the world.