“It’s Time to Relist”: Coinbase to Re-Enable XRP Trading After Ripple Scores Win

After much anticipation, the summary ruling in the Ripple Vs. SEC case has finally been announced, with Ripple coming out on top. Judge Analisa Torres declared that XRP should not be categorized as a security. However, the ruling has sparked extensive deliberation among experts, each offering their unique perspectives on the specific details and nuances of the case.

Chief Legal Officer at Coinbase, Paul Grewal, has stepped forward to provide valuable clarifications on the status of XRP and its compliance with Howey’s Test, a critical criterion used to determine asset classification.

Here’s what he had to say.

Paul Grewal Clarifies XRP’s Security Status

To address any potential misunderstandings about Judge Torres’ ruling, Grewal took to Twitter and emphasized that the ruling does not imply intermittent classification of XRP as a security. On the contrary, the ruling explicitly states that XRP is never considered a security.

Grewal pointed to page 15 of the ruling, highlighting that as a digital token, XRP does not inherently possess the characteristics of a “contract, transaction, or scheme” that fulfill the requirements outlined in the Howey test for an investment contract.

Also Read: Ripple’s Court Win Delivers Massive Blow to SEC’s Hostile Stance; Spells Hope for Crypto Firms

Coinbase to Relist XRP

Coinbase made the decision to remove Ripple’s XRP from its trading platform in January 2023, citing low usage as the reason for the delisting. Users holding XRP balances were informed of a “Coinbase Recovery Phase” to retrieve their funds after the delisting. Notably, Coinbase had already suspended XRP trading on its platform back in January 2021 due to the SEC’s lawsuit against Ripple Labs.

However, following the ruling in the Ripple Vs. SEC lawsuit, Coinbase’s Chief Legal Officer announced the decision to relist XRP.

Coinbase Gains an Edge Over the SEC

In June, the SEC filed a lawsuit against Coinbase and Binance, alleging that they allowed the trading of unregistered securities and should have registered themselves with the regulatory agency.

Related: Did Ripple’s Win Just Leave SEC’s Case Against Coinbase Null and Void?

The initial hearing for this lawsuit took place on July 13th, during which the judge’s questions shed light on her viewpoint regarding the legal dispute. Reports indicate that the judge posed insightful questions and expressed skepticism towards certain responses provided by the SEC.