Calls for Coinbase to Relist XRP Surges As Exchange Wins Major Legal Battle
XRP community continues to call on Coinbase to relist XRP.
Coinbase won a major lawsuit yesterday that could play a major role in determining whether the San Francisco-based crypto exchange will relist XRP.
According to reports, United States District Judge Paul Engelmayer dismissed a class action filed by Coinbase customers claiming the exchange sold unregistered securities to them. The customers also claimed that the prominent San Francisco-based exchange failed to register as a broker-dealer.
The case, filed against Coinbase and its CEO Brian Armstrong, was dismissed yesterday by Judge Engelmayer. The United States District Judge tossed out the case on the grounds that the plaintiff’s claim made in the amended complaint filed in March 2022 contradicts the initial complaint.
Commenting on the ruling, Paul Grewal, Chief Legal Officer at Coinbase, tweeted:
“We appreciate the federal court’s careful consideration and affirmation of what our User Agreement makes abundantly clear: Coinbase does not hold title to customer assets.”
XRP Community Calls Coinbase to Relist the Token
Following the victory, XRP community members took to the comment section to urge Coinbase to relist XRP. Some XRP faithful trended the “#Relist XRP” hashtag in the comment section to draw the company’s attention to the community’s demand.
Meanwhile, a Twitter user named “Raff” first asked pro-Ripple lawyer attorney Jeremy Hogan whether the court’s ruling absolves Coinbase of any wrongdoing should it choose to relist XRP. At press time, attorney Hogan has not responded.
@attorneyjeremy1 shouldn't this eliminate any exposure that Coinbase would have if they were to relist $XRP? So why not relist and pick up US trading volume/fees of a top 10 asset
— Raff (@onlymikeraff) February 1, 2023
Coinbase Delist XRP After SEC Sued Ripple
Recall that Coinbase joined other U.S.-based crypto exchanges to delist XRP after the SEC sued Ripple for allegedly conducting unregistered securities offering in the form of XRP.
U.S.-based exchanges delisted the token due to fears that the regulator might sue them for facilitating the trading of alleged unregistered securities. Whether the exchange will bow to pressure and relist XRP amid growing demands remains to be seen.
Meanwhile, calls for Coinbase to relist XRP have recently surged following new industry developments. This week, attorney John Deaton, who represented tech journalist Naomi Brockwell as a “friend of the court” in the LBRY case, convinced the judge to clarify that his November 7 ruling did not include secondary market sales of LBRY Credit (LBC) tokens.
As reported, the SEC recorded a total victory against LBRY in November. However, the regulator failed to heed the court’s directives to provide clarity for the secondary market transactions of LBC. In the final hearing on Monday, the judge said he would clarify that his November ruling does not include secondary market sales. Deaton revealed that the judge said he has no plans to stop the sale of LBRY credit via a “permanent injunction.”
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