Coinbase's Chief Legal Officer (CLO), Paul Grewal, has stated that the relisting of XRP, Ripple's native token, will depend on the legal reasoning behind the judge's ruling in the ongoing lawsuit with the US Securities and Exchange Commission (SEC), as well as Coinbase's assessment of the situation. Grewal made these comments during an interview with crypto-focused YouTube podcast channel, Thinking Crypto.
Grewal highlighted that Coinbase, as a publicly listed company, has a responsibility to tread carefully in this area, particularly with respect to any token that is subject to federal court litigation. He outlined three main factors that will influence Coinbase's decision to relist XRP: the legal reasoning behind the judge's ruling, the basis for the ruling, and Coinbase's assessment of whether the decision will be repealed or affirmed by the appeal court.
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 two-year litigation, Coinbase has not resumed trading for XRP, although the asset can still be found on the platform.
During the interview, Grewal commended Ripple's defense efforts against the SEC's charges and noted that Coinbase filed an amicus brief in Ripple's favor last year because he was completely persuaded by the Ripple defense's argument. He further mentioned that he hopes the court sees that the SEC has some holes in its theories. However, he asserted that the case could last much longer because whoever loses will take up the judgment in the appeal court.
Coinbase has 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. Nonetheless, it remains to be seen how the lawsuit will play out and what impact it will have on Coinbase's decision to relist XRP.
Will Coinbase relist XRP?