Rumors are circulating that Coinbase will be reintroducing XRP trading on its platform soon. Last Thursday, XRP was listed again on Coinbase Pro as the XRP / USD, XRP / EUR, XRP / GBP and XRP / BTC pairs were available for trading. However, this was interrupted as Coinbase said this was due to a “technical problem” and XRP trading remains on hold.
Additionally, a Reddit user noticed that the Coinbase app states that trading is not yet available. Previously it said: “This asset is not supported by Coinbase.”
Granted, both signs fall into the weak evidence category, especially since Coinbase has denied the rumors. But given Coinbase’s recent dispute with the SEC, a re-listing of XRP would be an appropriate response.
Why did Coinbase remove XRP in the first place?
In December 2020, the SEC filed a lawsuit against Ripple for the sale of unregistered securities valued at $ 1.3 billion. The regulator claims that the sale of his XRP token was carried out illegally over a period of eight years.
At that point there was great uncertainty about Ripple and XRP. And given the SEC’s track record in cases it has won, particularly in the crypto industry, you’d think the game was over for Ripple.
Several Ripple partners took this view, including MoneyGram, and a number of crypto exchanges like Bitstamp have also pulled out. But Coinbase’s decision to part with XRP was the toughest pill to swallow as it’s the largest U.S. exchange. A statement from Coinbase dated January 19, 2021 traced the decision directly back to ongoing legal action.
“In light of the recent SEC lawsuit against Ripple, trading in our XRP order books has been suspended in all regions. However, you can still deposit and withdraw XRP. While XRP funds will remain securely in your account after trading is suspended, you will not be able to make purchases, sales or conversions. “
But since then, rather than overturning, Ripple has uncovered significant flaws in the SEC’s allegations. Many suspect that the supervisory authority is a little at a loss as to how to proceed with this case. The disclosure process has revealed a significant lack of solid practice on the part of the regulator. Some accuse the agency of making things up, using the term “regulation through litigation” to describe this farce.
Is this a response to the recent clash with the SEC?
Last week, Coinbase CEO Brian Armstrong tweeted about his clash with the SEC. Armstrong said he approached regulators about a new lending opportunity, leading him to be accused of violating securities laws.
Armstrong said they refused to explain how they came to this conclusion. He even threatened legal action if Coinbase should continue to offer this service to its users.
After getting a taste of what the SEC is doing, some say it is only right for Coinbase to reintroduce XRP trading.
Proof of text: Bitcoinist