Pro-XRP lawyer slams Coinbase for delisting XRP, comments on SEC lawsuit against the exchange
- Bill Morgan, a pro-XRP lawyer, called out Coinbase’s inconsistency in its treatment of XRP.
- The exchange delisted XRP while several assets labeled as securities by the SEC continue trading on the platform.
- Experts believe Coinbase is unlikely to relist XRP since the payment remittance firm has dropped the altcoin from its liquidity hub service.
Pro-XRP attorney Bill Morgan recently shared his views on a tweet exchange between Coinbase’s chief legal officer and attorney John Deaton. As the two personalities discussed the Securities and Exchange Commission’s (SEC) crackdown on Coinbase and the support that the exchange has received from financial institutions, Morgan highlighted the inconsistencies in the exchange’s treatment of assets like XRP.
Coinbase delisted XRP back in January 2021, citing the SEC’s lawsuit against payment giant Ripple. However, the exchange did not take any such steps for assets like Cardano and Solana. Both these assets have been tagged as securities by the US regulator, and the exchange facilitates their trading.
Also read: Analysts predict 10% rally in Cardano price as liquidity from Tether floods the market
Coinbase’s Paul Grewal slammed for failure to relist XRP
Pro-XRP attorney Bill Morgan recently slammed Coinbase’s Chief legal officer Paul Grewal for his comments on attorney John Deaton’s tweet.
If you did nothing unlawful relist XRP. You had no trouble not pausing trading of the other coins the SEC alleges are securities and you allege in your own court documents they are not securities. Apparently that doesn’t concern your shareholders. It is pathetically inconsistent https://t.co/QoIyFzxuEl
— bill morgan (@Belisarius2020) July 4, 2023
Morgan’s tweet was a response to an exchange between Coinbase’s Paul Grewal and Attorney John Deaton. In his tweet, John Deaton, an amicus or “friend of the court” in the SEC vs. Ripple lawsuit, expressed his support for Coinbase and cited that the exchange’s business is “legal” despite the SEC’s allegations. However, Morgan stresses the fact that the exchange platform is yet to relist XRP.
Yes sir. Yes sir it does. https://t.co/2AQf2gJvha
— paulgrewal.eth (@iampaulgrewal) July 3, 2023
Both Morgan and Deaton have taken note of the fact that Coinbase has refrained from coming out in support of the altcoin XRP. The exchange delisted the token following the SEC’s legal action against payment giant Ripple. However, since then, there has been a change in the exchange’s stance. The SEC listed nearly 60 cryptocurrencies as securities in its lawsuit against Binance and Coinbase.
Coinbase platform revealed inconsistencies in its stance by facilitating trade for several such assets.
Attorney Morgan highlighted that Coinbase’s treatment of said assets is different from its stance on XRP and slammed the exchange for such “inconsistent” behavior.
Morgan told his 14,400 followers that Coinbase facilitates trade for assets like Cardano (ADA), and Solana (SOL), both of which are labeled securities by the SEC. Therefore the exchange’s reason for delisting XRP is no longer valid and sheds light on Coinbase’s inconsistent policies.
SEC vs Ripple lawsuit FAQs
Why are the US Securities and Exchange Commission and Ripple litigating?
The United States Securities and Exchange Commission (SEC) brought charges against Ripple and its executives alleging that the cross-border payment settlement firm raised more than $1.3 billion through an unregistered asset offering of the XRP token. Ripple argues that XRP should not be treated as a security or an investment contract, just like the SEC looks at Bitcoin or Ethereum, citing views from former SEC Director of Corporation Finance William Hinman.
When did the SEC vs. Ripple court case start?
The SEC charges were made public in December 2020. The long-running litigation, presided by Judge Analisa Torres, seems to be close to its end as both parties fail to reach an agreement.
What are the effects on XRP price?
Ripple is the largest holder of the altcoin XRP. The SEC’s charges against Ripple resulted in a mass delisting of XRP across crypto exchange platforms and a sharp decline in the token’s value, which used to be the third crypto asset by market capitalization after Bitcoin and Ethereum. A positive outcome for Ripple in its case against the SEC would benefit XRP’s price, while a SEC win is likely to weigh further on the asset, experts say.
Which implications could the ruling have on the overall crypto industry?
The final verdict in the SEC vs. Ripple lawsuit is the most highly anticipated in the crypto ecosystem. The lawsuit is expected to set precedent for other open cases that affect dozens of digital assets. A ruling in favor of the SEC would most likely bring further regulation to the sector as it would classify most tokens as securities. On the contrary, Ripple’s win would be interpreted as a validation of the crypto markets and could boost investors' confidence if current legal uncertainties surrounding digital assets in the US are solved.
What about secondary sales of XRP among traders?
The ruling may also include views over XRP secondary sales, which directly affects investors who trade XRP on cryptocurrency exchange platforms. Pro-Ripple attorney John Deaton, who filed an amicus brief in the SEC vs. Ripple case, suggests this matter is likely to be addressed. A ruling stating that secondary sales don't qualify as securities, contrary to what the SEC claims, is likely to be beneficial for XRP.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
