XRP Investors Hold their Breath as SEC and Coinbase Battle it Out
The outcome of the Ripple v. SEC case is a critical development for the cryptocurrency industry's regulatory concerns, and an important summary judgment is anticipated soon.
The SEC and Ripple have been involved in a widely-publicized dispute for over two years. The SEC has accused Ripple of promoting XRP as a security, which could hinder its long-term value.
Amid this, there have been recent issues between the SEC and cryptocurrency exchange Coinbase. The SEC filed a Wells notice against Coinbase, and the exchange has now replied.
However, XRP advocate and lawyer Bill Morgan has expressed concerns about Coinbase’s defense strategy.
The fact Coinbase delisted (ceased allowing trading) of XRP can hurt its fair notice defense to a claim by the SEC. In its Wells Notice response, the fair notice defense is anticipated by Coinbase as a defense it will argue if sued. /1 https://t.co/dofVF4rEMb pic.twitter.com/nOxqPhzw4c
— bill morgan (@Belisarius2020) April 30, 2023
Morgan argues that Coinbase’s use of the fair notice defense may not be advisable, as it could have negative consequences.
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He also notes that Coinbase’s delisting of XRP after the SEC v. Ripple lawsuit in January 2020 may challenge their defense.
Morgan tagged Paul Grewal and Brian Armstrong in his tweet, urging them to reconsider their Wells notice response.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
