Following the backing Ripple Labs, the parent company of XRP, received from the US-Based Blockchain Association last week, another entity has thrown its weight behind Ripple. It is now helping in the fight against the SEC and its so-called "regulate by enforcement" agenda.
Recall that the Blockchain Association declared that it would "stand" with the American crypto industry by submitting an "amicus brief" (also known as a "friend of the court") in the SEC enforcement case against Ripple.
Recently, the crypto exchange Coinbase has joined in the fight.
Coinbase, the cryptocurrency exchange, has also weighed in and asked a federal court for permission to submit an amicus brief. The crypto exchange aims to serve as an "amicus, or "friend of the court," in the legal dispute between the U.S. Ripple Labs and the Securities and Exchange Commission (SEC).
So far, Coinbase has joined the Blockchain Association, a crypto advocacy group, SpendTheBits, a payment system that uses XRP technology, and the lawyer, John Deaton, in the fight to end Ripple's case against the SEC permanently.
Remember that in December 2020, the SEC declared that it had sued Ripple, its former CEO Christian Larsen, and its current CEO Brad Garlinghouse for allegedly raising $1.3 billion through XRP-based unregistered securities transactions.
Coinbase has challenged the SEC's right to sue Ripple, addressing the issue of whether the SEC offered a warning or clear-cut rules before commencing its enforcement action.
Coinbase also added that agency gave no clear instructions to the industry's firms and companies before filing their lawsuits.
In the Coinbase filing, they mention that due to the lack of SEC rules for the crypto market, it is difficult to determine whether the SEC gave reasonable notice before taking enforcement action against the sales of digital assets.
According to the crypto exchange, this makes the ongoing case particularly unsuitable for summary judgment. Coinbase also argues that in a similar vein, SEC's uneven enforcement strategy has caused problems for firms operating in the industry.
It is also questionable how other companies with equivalent operations have received no such investigation from the SEC, while Ripple and others have faced intense enforcement, Coinbase says.
XRP has shown a reluctance to break out of the symmetric triangle it has been in since late September. After retracing to the lower support of the symmetric triangle in late October, XRP has been consolidating around this level and has failed to move to the upside.
Chart showing price action on XRP | Source: Tradingview
On the daily chart, XRP's price remains above its 100-day moving average, indicating that the bulls are currently in control.
The MACD shows that the bears were in control over the last few weeks (explaining why XRP failed to move during last week's bullish streak). However, the indicator shows that the bears are losing steam, and XRP may have an eventful November.
The RSI on the daily chart shows neutral conditions in the market, indicating a period of indecision as the bulls and bears gather their strength. Overall, time will tell what the cryptocurrency does next in November and beyond.
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