Relist XRP: Bill Morgan Questions Coinbase's Inconsistent Approach in XRP Listings

Paul Grewal, Chief Legal Officer (CLO) at Coinbase, recently took to Twitter to voice his thoughts on the Major Questions Doctrine holding in Nebraska. In a series of tweets, Grewal emphasized that the Securities and Exchange Commission’s (SEC) interpretation of the “investment contract” in relation to digital assets goes against the law.

He argued that the SEC’s assertion of authority over all digital assets, except Bitcoin (BTC), is not just staggering but disconnected from the requirement of enforceable rights between enterprises and purchasers.

I’ve read, re-reread, and re-re-read the Major Questions Doctrine holding in Nebraska at p. 19-26. Swap out “Secretary” for “Chair,” “digital asset” for “student loans,” and there is no conclusion but one: the SEC’s interpretation of “investment contract” violates the law. 1/3
— paulgrewal.eth (@iampaulgrewal) July 4, 2023

Bill Morgan Spotlights Coinbase’s XRP Trading Halt

Digital asset enthusiast and lawyer, Bill Morgan, promptly responded to Grewal’s tweets, questioning Coinbase’s decision to continue halting XRP trading on its exchange while allowing the trading of other coins and its own staking service, which the SEC deems security. Morgan expressed frustration with the inconsistency and called for Coinbase to relist XRP if no unlawful actions had been committed.

If you did nothing unlawful relist XRP. You had no trouble not pausing trading of the other coins the SEC alleges are securities and you allege in your own court documents they are not securities. Apparently that doesn’t concern your shareholders. It is pathetically inconsistent https://t.co/QoIyFzxuEl
— bill morgan (@Belisarius2020) July 4, 2023

Seeking Clarity and Exposing Hypocrisy

Morgan emphasized that Coinbase’s alleged inconsistency in handling XRP trading raises concerns about undisclosed motives. He highlighted the fact that Coinbase had no trouble allowing trading of other coins that the SEC alleges are securities, despite Coinbase’s own court documents asserting they are not. Morgan further criticized Coinbase for failing to explain this inconsistency, indicating a disregard for shareholder concerns.

“There would either be pauses in trading of other alleged digital asset securities like ADA and Solana or Coinbase would resume secondary market XRP trading,” Bill Morgan pointed out the hypocrisy in Coinbase’s actions.

A Clash of Perspectives

The disagreement between Grewal and Morgan centers on Coinbase’s handling of XRP trading and the broader implications of the SEC’s interpretation of securities in the digital asset space. Grewal asserts that the SEC’s position violates the law, while Morgan contends that Coinbase’s actions are inconsistent and raises questions about their motivations.

I have asked, re-asked and re-re-asked why Coinbase continues the halt on XRP trading on its exchange while not pausing the trading of other coins & your own staking service the SEC calls a security & why you don’t explain the inconsistency. The only conclusion: another motive. https://t.co/3W25Cjzzfd
— bill morgan (@Belisarius2020) July 4, 2023

Morgan wraps up his discourse by calling out Paul Grewal, Chief Legal Officer of Coinbase, who, according to Morgan, has yet to offer a comprehensive explanation for the platform’s inconsistent stance. It is good to know that enthusiasts like Morgan will keep the key players accountable, ensuring that actions aren’t just compliant, but also consistent and fair.

Source: https://coinpedia.org/news/relist-xrp-bill-morgan-questions-coinbases-inconsistent-approach-in-xrp-listings/