u.today
Back in December 2020 when the United States Securities and Exchange Commission (SEC) launched its $1.3 billion lawsuit against Ripple Labs Inc, many exchanges delisted the XRP coin. Based on how the regulator's stance had evolved over the years, Ripple's ally, LBRY is now advocating for Coinbase to relist the digital currency.
As one of the foremost crypto trading platforms that trade publicly on the NASDAQ, Coinbase did all it could to avoid finding itself in the SEC's crosshairs by supporting XRP trades while its status as a security remains unclear. While the exchange also removed XRP from its wallet, a number of experts have detailed reasons why the trading platform need not be bothered about delisting the coin.
Having lost its own securities case to the SEC earlier this year and riding on the standard of its own legal proceedings with the regulator, LBRY said XRP sales on the secondary market by holders do not constitute a security.
Coinbase should relist $XRP.
— LBRY 🚀 (@LBRYcom) February 1, 2023
Under the SEC vs LBRY standard, $XRP sold by secondary holders is not a security.
The delisting of the XRP coin can be tagged as one of the primary setbacks for the cryptocurrency in the wake of the lawsuit. The coin's price tanked considerably at the time as some users trading on the exchanges that delisted it had to part ways with the coin.
Hope for XRP revival
The lawsuit between the U.S. SEC and the blockchain payments firm is nearing a conclusion, and the two possible scenarios might end up favoring the XRP coin.
While many believe Ripple stands a chance to win the regulator, XRP coin might be relisted if this happens, as it will be clear the securities argument from the regulator is an overreach of agency powers. However, if the SEC wins, exchanges may not relist XRP, but the coin will be able to trail a new, clear roadmap in order to regain its lost price valuation.
At the time of writing, XRP is changing hands at $0.4129, up 2.96% over the past 24 hours.