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Following Coinbase’s filing to self-certify $XRP futures, Attorney John Deaton gave a recap highlighting the exchange’s engagement with $XRP.
On April 3, Coinbase announced that its derivatives arm, Coinbase Derivatives, filed to launch self-certify $XRP futures in the U.S.
The move, according to Coinbase, aims to give investors a more regulated and capital-efficient way to gain exposure to $XRP, which it referred to as “one of the world’s most liquid assets.”
We're excited to announce that Coinbase Derivatives has filed with the CFTC to self-certify $XRP futures – bringing a regulated, capital-efficient way to gain exposure to one of the most liquid digital assets.
We anticipate the contract going live on April 21, 2025.
Stay tuned… pic.twitter.com/nKUPjjnMKW
— Coinbase Institutional 🛡️ (@CoinbaseInsto) April 3, 2025
Coinbase Engagement with $XRP
Consequently, Deaton recounted Coinbase’s engagement with $XRP and how the exchange correctly analyzed that the coin was not a security.
$XRP is Not a Security
According to Deaton, Coinbase’s team of experienced securities lawyers analyzed $XRP using its internal digital asset framework and concluded that $XRP was not a security.
In January 2019, the exchange informed the SEC of its findings to ensure its analysis corresponded with the commission’s view of $XRP. This confirmation was necessary at the time because the exchange planned to list $XRP.
Interestingly, the SEC did not dispute Coinbase’s findings because its internal enforcement lawyers had previously conducted a similar analysis. The commission published an $XRP Howey Analysis Memo on June 13, 2018, but it never concluded that $XRP was a security.
This publication was made a day before former SEC official William Hinman gave the controversial speech declaring Ethereum was no longer a security.
Coinbase Lists and Delists $XRP
A month after Coinbase met with the SEC, the exchange listed $XRP on February 26, 2019. Notably, it promoted $XRP’s use, alongside USDC, for free international money transfers.
Less than two years later, the SEC sued Ripple and two of its executives, claiming $XRP was a security. In the lawsuit, the commission alleged that all $XRP transactions were securities, irrespective of how they were acquired or sold.
Following this stringent action, Coinbase and other U.S. exchanges delisted $XRP to avoid potential sanctions from the SEC.
In defense, a group of over 75,000 $XRP holders joined the case as amici curiae. Three thousand investors from this group submitted affidavits claiming they did not know about Ripple when they first purchased $XRP.
According to Deaton, the ruling Judge, Analisa Torres, cited the affidavits and agreed with Ripple and Coinbase that $XRP was not a security in itself. Shortly after the judge issued this decision in July 2023, Coinbase and other exchanges relisted $XRP.
Self-Certify $XRP Futures
Less than two years later, Coinbase has announced another support for $XRP. This time, it plans to launch self-certify futures for the coin. If the CFTC approves the filing, contracts for the $XRP futures will debut on Coinbase on April 21, 2025.
The move comes over a week after Ripple agreed to drop its cross-appeal, aligning with the SEC’s decision to drop the multi-year lawsuit.