Other Companies to Support Ripple

So far, only the non-profit Investor Choice Advocates Network and the crypto mobile app SpendTheBits have been allowed to submit amicus briefs in a federal case. Along with the submission, cryptocurrency lawyer John Deaton asked for permission to write an amicus brief on behalf of the “decentralized community” of XRP. The Crypto Council for Innovation and Valhil Capital also sent papers. On October 28, the Blockchain Association, a crypto advocacy organization, revealed that it had submitted its own amicus brief in favor of Ripple, arguing that SEC chairman Gary Gensler’s views on securities regulations might have had a devastating influence on the industry.

The paper reveals that the cryptocurrency exchange situated in the United States backs Ripple (XRP) in its dispute with the United States Securities and Exchange Commission. In addition, Coinbase claims in its motion that the SEC has been unable to keep up with the lightning-fast speed of the cryptocurrency business.

The following is an excerpt from the filing:

Rather than engage in rulemaking, the current SEC administration has sought to expand the SEC’s jurisdiction over the cryptocurrency industry through ad hoc enforcement actions alleging on a retrospective basis that already-trading digital assets are actually securities subject to SEC regulation.

The call for an amicus curiae brief came right after Brian Armstrong, the CEO of the exchange, asked everyone in the sector to get more involved. However, the CEO of Ripple, Brad Garlinghouse, made fun of the CEO of Coinbase, Brian Armstrong, by saying that Armstrong supports tribalism despite the fact that he is advocating against it.

Ripple Labs has been fighting with the SEC in court for more than two years over whether or not the sale of its XRP coins is an unregistered sale of securities.

It’s hard to say when the lawsuit will be over, but Ripple CEO Brad Garlinghouse said on a panel at DC Fintech Week on October 11 that he thinks it might be over by the middle of 2023.

Moreover, XRP Ledger (XRPL) may soon accept native non-fungible coins (NFTs).

The post Coinbase Filed an Amicus Brief in Ripple Battle Against the SEC appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.

In a tweet, Armstrong said that the proposed changes to the crypto tax reporting could have a deeply negative impact on the evolving and consistently expanding crypto market in the US. He also said that it could push innovative startups to move to other global destinations. 

Armstrong is particularly not happy with the definition of the term broker in the new proposed tax framework and he said that it makes anyone a broker who facilitates the transfer of digital assets. Coinbase CEO is not the only one to criticize the proposition. 

“This makes no sense,” Armstrong tweeted. “Smart contracts, for instance, are not companies, and cannot be modified to collect KYC info or issue 1099s. They are simply software running on the blockchain that anyone can use,” he added.

Regulatory authorities across the globe are tightening the noose around cryptocurrency payment and other services providers. The US is going strict with regulatory compliance and is coming up with a new tax framework for crypto-related investments and services.

The post Coinbase CEO Not Happy With New Crypto Tax Changes In The US appeared first on Crypto Market Insights: Dive In with CryptoUpdate.io.