Calls for Coinbase to embrace XRP have risen to a fever pitch once more, spurred on by LBRY’s huge triumph thanks to Naomi Brockwell and John Deaton.
There has been an outcry from LBRY for Coinbase to relist XRP.
This request was made yesterday in a tweet by the blockchain team that hosts digital content. Using the requirements of the US Securities and Exchange Commission complaint against LBRY, LBRY claims that XRP sold in secondary markets does not qualify as a security. Predictably, the tweet prompted many similar requests from the XRP community.
The remark was made after the judge in the SEC v. LBRY case recently clarified. It’s important to note that after the court ruled in favor of the SEC on November 7 in the lawsuit, the regulator disregarded court orders in a status conference on November 21 to provide clarification on secondary market sales of LBRY Credits (LBC). Instead, the setup to extend the ruling to the secondary markets led LBRY to file a Motion to Limit the SEC’s Remedies.
In the final hearing on Monday, the judge stated that he would make it clear that his decision did not extend to secondary markets. Deaton, who spoke on the defense of Naomi Brockwell as a lawyer friend of the court and argued in favor of isolating the court’s decision from secondary market sales, reportedly said this. According to Deaton, who was in attendance, the court also stated that he was not seeking to sign a long-term injunction to halt the sale of LBC.
More significantly, the judge compelled the SEC to state on the record that LBC, the underlying asset, did not represent a security based on a paper by commercial contracts attorney Lewis Cohen, claims the pro-XRP attorney. Notably, the report evaluates all US securities cases since the Howey case, demonstrating that no court has ruled that an investment contract’s underlying asset represents a security. Deaton has made an effort to emphasize this issue in several Twitter conversations and legal filings, including his brief on behalf of Brockwell in opposition to the SEC’s expansive allegations.
As a result, XRP holders are also thrilled, considering, by this logic, XRP cannot be referred to as a security. XRP is unregistered security, according to a complaint the SEC filed against Ripple in December 2020. Notably, the parties’ legal dispute lasted more than two years.
XRP to be Relisted on Coinbase?
It remains to be seen whether these will convince Coinbase and other US cryptocurrency exchanges to relist XRP. For perspective, following the SEC’s legal action against Ripple, numerous US cryptocurrency exchanges, including Coinbase, decided to delist XRP out of concern for legal action.
It is important to note that the XRP community frequently views Coinbase as an extraordinary case because the cryptocurrency exchange thoroughly examined XRP in 2018 and concluded that the asset was not a security. Additionally, the cryptocurrency exchange met with the SEC in 2019 to obtain approval to list XRP due to this analysis, and the SEC concurred.
The crypto exchange had not responded to the XRP community. It is safer to presume that it will hold off until the Ripple case is resolved. Ripple CEO Brad Garlinghouse said he anticipates a decision in the first part of the year. Based on reports, everything has been briefed, and the judge’s decision is the only thing left.
