There are rumors that Coinbase will soon resume XRP trading on its platform.
Last Thursday, XRP was re-included in Coinbase Pro, with the pairs XRP / USD, XRP / EUR, XRP / GBP and XRP / BTC available for trading. But it soon shrank, with Coinbase say this resulted from a “technical problem” and that XRP trading remains suspended.
As previously announced, Coinbase has suspended trading on XRP. Due to a technical issue, XRP could be temporarily seen in the Coinbase Pro mobile app for some customers, but could not be changed.
– Coinbase Pro (@CoinbasePro) September 10, 2021
In addition, a Reddit user noted that the Coinbase app indicates that “trading is not yet available.” As previously stated, “this resource is not compatible with Coinbase.”
It is true that both instances fall into the category of weak evidence, especially because Coinbase has denied the rumors. But given Coinbase’s recent meeting with the SEC, the withdrawal of XRP would serve as an appropriate response.
Why did Coinbase remove XRP in the first place?
In December 2020, the SEC issued legal action against Ripple for selling charges of $ 1.3 billion in unregistered securities. The regulator alleges that sales of its XRP token were made illegally over a period of eight years.
At the time, massive uncertainty surrounded Ripple and XRP. And given the SEC’s track record in case it wins, especially in the crypto industry, you’d be forgiven for thinking it ended Ripple.
Several Ripple partners adopted this view, including MoneyGram, and a lot of exchanges like Bitstamp also jumped. But Coinbase’s decision to abandon XRP was the hardest pill to swallow, as it is the largest exchange in the United States.
A Coinbase statement of January 19, 2021 attributed the decision directly to the ongoing lawsuit.
“Due to the SEC’s recent action against Ripple, trading with our XRP mailing lists has been suspended in all regions. You can still deposit and withdraw XRP. Although XRP funds will remain securely stored in your account after the suspension of trading, you will not be able to buy, sell or convert “.
But since then, instead of turning it around, Ripple’s defense has revealed major flaws in the SEC’s allegations. Making many assume that the regulator is a little baffled as to where to go next with this case.
The discovery process has revealed a clear lack of careful practice of the regulator. Some accuse the agency of inventing things as they go along, with the term “litigation regulation” approaching the description of the farce.
Is this a response to the recent running of the SEC?
Last week, Coinbase CEO Brian Armstrong tweeted about his access to the SEC. Armstrong said he addressed the issue of a new loan facility with the regulator, only to receive allegations that the program violates securities law.
Armstrong said they refused to explain how they had come to that conclusion. And it even threatened legal action if Coinbase continues to offer this service to its users.
Having tried the unreasonable approach the SEC takes, some say it is right for Coinbase to re-establish XRP trading.
Whether or not this happens is anyone’s guess.
