Legal experts from Coinbase and Ripple have come together to discuss pressing issues in the crypto landscape in the United States. This encounter sparked speculation. While some believe that the two companies are joining forces to resist attacks from the SEC, part of the crypto community fears a possible listing of XRP on Coinbase. What is it in reality?
Towards a Ripple & Coinbase alliance against the SEC?
Leading lawyers from Ripple and Coinbase held an offsite meeting. Together they addressed pressing issues in the cryptocurrency industry. This meeting comes as the two companies are in the midst of a battle against the SEC (Securities and Exchange Commission).
Indeed, since 2020, Ripple Labs has been sued for allegedly selling unrecorded titles in the form of XRP. For its part, Coinbase received a Wells notice from the SEC last March. The SEC accused the exchange of having violated US securities law.
In this tense context, the two companies had little choice but to join forces. For nearly two years, Coinbase and Ripple have been advocating for a clear regulatory framework for the crypto sector.
However, the SEC has favored regulation through law enforcement. Thus, several major players in the sector found themselves in the crosshairs of the SEC. These include Kraken, Gemini or Genesis. Others, like Bittrex and Nexo have even resolved to leave American soil.
Re-listing of XRP on Coinbase: a possibility on the horizon?
On January 19, 2021, XRP was “temporarily suspended” from Coinbase. This decision was taken in response to a complaint filed by the SEC against Ripple Labs in December 2020. The American regulator accused Ripple of having sold unregistered financial securities.
Today, Coinbase seems closer to Ripple than ever. The American exchange even sought judicial authorization to submit an amicus curiae brief in the lawsuit between Ripple and the SEC. Coinbase believes that the lawsuits against Ripple put the entire crypto industry in jeopardy.
Recently, Coinbase Chief Legal Officer Paul Grewal expressed his admiration for the defense strategy deployed by Ripple. This raised hopes among many XRP enthusiasts for a reintegration of cryptocurrency on Coinbase.
However, such a breakthrough seems unlikely at this time. In a recent interview with Tony Edward, Grewal pointed out that the timing of a possible re-listing would depend on several elements. Despite the friendlier atmosphere between the legal representatives of Ripple and Coinbase, the return of XRP to Coinbase remains uncertain.
A re-listing of XRP on Coinbase would mark a crucial turning point for Ripple. However, several regulatory hurdles remain. Discussions between legal representatives of Ripple and Coinbase could facilitate further collaboration and provide a better understanding of the big regulatory battle facing the cryptocurrency industry.
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