XRP representative John E. Deaton has heaped praise on Coinbase’s fiery response to the SEC lawsuit noting that it serves as an example of how to stand up for one’s interests while extending ” the olive branch of dialogue and cooperation.”
On April 27, crypto exchange Coinbase fired back at SEC’s Wells notice telling the federal regulator that an enforcement action against the crypto exchange would pose “major programmatic risks” to the SEC that would “fail on the merits.”
The regulator cautioned that the spot trading, staking, custody, and institutional trading activities of Coinbase were in jeopardy in the Wells notice sent in March.
Additionally, the exchange was accused by the SEC of selling and offering unregistered securities in violation of federal law.
“Coinbase does not list, clear, or effect trading in securities. The analysis used by SEC officials to support an enforcement action appears to rest on superficial and incorrect analogies to products and services offered by others,” Coinbase noted in a blog post from chief legal officer Paul Grewal.
The SEC has intensified its enforcement drive against major crypto players in recent months, and Coinbase is not the only exchange to receive a Wells Notice.
Previously, the New York-regulated blockchain infrastructure and financial services platform- Paxos was issued. As a result of the notice, Paxos was forced to sunset its Binance-branded stablecoin product.
That being said, Coinbase’s latest response indicates that the firm is not ready to go down without a fight and the move has resonated with other crypto supporters like XRP attorney Deaton.
Earlier the XRP representative threw his weight behind Coinbase Global Inc for filing against the United States’ regulator.
XRP Sales Performance In Q1
Deaton was particularly impressed by Coinbase filing the second Writ of Mandamus against the commission which he believed would help in better regulatory governance.
Amidst the regulatory troubles, XRP maintained its robustness in the first quarter of 2023 according to a report published by its major backer Ripple.
The token’s overall sales shoot up to $361.06 million from the $226.31 million reported in the prior quarter.
The report also discussed XRP Ledger’s on-chain activity whose volumes with decentralized exchange volumes increased 34% to $115 million in Q1 2023 versus Q4 2022.
On centralized exchanges, the token’s Average Daily Volume [ADV] jumped 46% in Q1 to $1 billion from $698 million.