Key Takeaways:
- Coinbase backs Ripple against the SEC.
- All the briefs are expected by Nov 18.
- Despite the skew in support, XRP could lose another 40%, the charts say.
YEREVAN (CoinChapter.com) – Coinbase, the largest crypto exchange in the US, officially filed its amicus brief request in Ripple’s support in the court proceedings against the Securities and Exchange Commission (SEC), joining several companies that already jumped on the bandwagon.
SEC vs. Ripple amicus briefs
In detail, an amicus brief is a legal document containing advice or information relating to a case from a person or organization that is not directly involved in the case.
As CoinChapter reported on Nov 5, Cryptillian Payment Systems, an online digital wallet service that uses XRP for transactions, was one of the mentioned companies. Cryptillian appealed to Judge Torres, noting the adverse consequences for their company should SEC win the summary judgment motion.
Coinbase joins in
Notably, both sides have previously filed the said motion for summary judgment. Ripple and SEC claimed in separate motions that the evidence they have already presented would be enough for a ruling.
Coinbase filed a brief amicus request as well, arguing several key points.
In order to ensure the existing due process precedents on which the fair notice defense rests continue to safeguard against improper regulatory enforcement when needed, the Court should deny the SEC’s motion for summary judgment on this issue.
said Coinbase representatives in the ruling.
Coinbase also evoked the fair notice defense, claiming its importance for the entire crypto segment. In detail, Ripple had previously argued that SEC had not provided a fair notice before filing the lawsuit, which created one of the main defense pillars.
The fair notice doctrine is one of the few constitutionally recognized protections against
argued the Coinbase team.
the harms caused by unpredictable government enforcement actions. That safeguard is particularly
important for the cryptocurrency industry.
The lawyers also added that the SEC has chosen to regulate the crypto field through “ex-post enforcement actions” rather than “ex-ante rulemaking.” In plain English, Coinbase implied that the agency should prevent lawbreaking through a regulatory frame rather than punish companies for SEC lacking one.
Ripple for the win? Not quite
Judge Torres granted the multiple requests from different companies to file an amicus brief and will expect them by Nov 18.
By November 18, 2022, the Association, six XRP holders, Coinbase, the CCI, Valhil, Cryptillian, Veri DAO, Reaper Financial, InvestReady, NSEI and Paradigm must file their formal briefs.
read Judge Torres’ ruling.
Ripple’s General Counsel Stuart Alderoty commented on the upcoming filings, calling the situation “extraordinary.” He also noted that for anyone keeping score, the current layout is Ripple’s 14 to SEC’s 2.
Meanwhile, the briefs alone don’t guarantee a win for Ripple. The XRP lawsuit has been ongoing since Dec 2020, and the chances of a fast final ruling before 2023 are slim, considering the crypto market’s precarious position. Moreover, XRP could face a 40% decline in the coming month.
XRP Price to drop 40%
As CoinChapter reported in the previous XRP review, the digital asset risks losing 40% of its valuation in the upcoming month, despite the overall bullish pattern on the daily chart. In short, XRP painted a ‘falling wedge’ setup, which promises triple-digit gains for the crypto, and sets the target price at $1.7.
However, the XRP/USD exchange rate stood at $0.38 on Nov 15 and could drop further before confirming the wedge. If XRP breaks below the support at $0.31, it could drop to the wedge’s lower trendline, a 40% decline.
Admittedly, it is unclear where the crypto market will land due to the latest FTX implosion and the hindering macro factors. However, XRP investors should keep an eye on the Bitcoin charts, as altcoins will likely catch the alpha’s drift.
