Coinbase, the popular US cryptocurrency exchange, may resume trading XRP, the native token of Ripple if the judge rules in favor of Ripple in the ongoing lawsuit with the US Securities and Exchange Commission (SEC). However, the decision to relist XRP will depend on several factors, said Paul Grewal, Coinbase’s Chief Legal Officer (CLO), during an interview with Thinking Crypto, a crypto-focused YouTube podcast channel.
Factors to Consider Before Relisting XRP
According to Grewal, Coinbase’s decision to relist XRP will depend on three main factors. First, the legal reasoning behind the judge’s ruling. Second, the basis for the ruling, and third, Coinbase’s assessment of the situation to know whether the decision will be repealed or affirmed by the appeal court. Grewal emphasized that Coinbase has a responsibility as a publicly listed company to tread carefully in this area, particularly with respect to any token that’s a subject of federal court litigation.
Background of Coinbase’s Suspension of XRP Trading
Coinbase suspended trading for XRP on its platform on December 28, 2020, shortly after the SEC’s lawsuit against Ripple began on December 26, 2020. Despite the dynamics of the 2-year litigation, Coinbase has not resumed trading for XRP, although the asset can still be found on the platform.
Grewal Commends Ripple’s Defense and Criticizes SEC’s Theories
During the Thinking Crypto interview, Grewal commended Ripple’s efforts at mounting a strong defense against the SEC’s charges. He noted that Coinbase had to file its amicus brief in Ripple’s favor last year because he was completely persuaded by the Ripple defense’s argument. Grewal further mentioned that he hopes the court sees that the SEC has some holes in its theories. Nonetheless, he asserted that the case could last for much longer because whoever loses will take up the judgment in the appeal court.
Coinbase’s Legal Run-ins with the SEC
Coinbase has also had its legal run-ins with the SEC as the agency classifies some of its listed assets as securities. The exchange has delisted tokens such as Civic (CVC) and district0x (DNT) due to regulatory concerns.
Coinbase’s decision to relist XRP will likely be influenced by the SEC’s classification of XRP as a security, a claim that Ripple has vehemently denied. If Ripple wins the lawsuit, it could have significant implications for the wider cryptocurrency industry, particularly with respect to the classification of cryptocurrencies as securities.