Speculations make the rounds online as Coinbase requests to file an amicus brief supporting Ripple in the legal battle with the SEC.
Coinbase surprised many in the XRP community yesterday as the leading US-based exchange submitted a request to file an amicus brief in support of Ripple in the case with the US Securities and Exchange Commission.
Unsurprisingly, the move has sparked speculation among the XRP faithful that the exchange is looking to relist XRP.
Coinbase filed an Amicus Brief Supporting #Ripple! Could this mean they’re going to relist #XRP 👀 https://t.co/sUKsyKwz6T
— XRPcryptowolf (@XRPcryptowolf) November 1, 2022
As per Coinbase’s amicus brief request, along with other US-based crypto exchanges, it was forced to cease trading activities for the token following the SEC’s legal action against Ripple in December 2020. As Coinbase highlights in its brief, the case led to a domino effect that wiped off about $15 billion from XRP’s market cap, a loss felt mainly by XRP holders.
It is worth noting that recent statements from Coinbase CEO Brian Armstrong renewed calls for the exchange to relist the token. The Coinbase chief had said that he was opposed to the tribalism in the crypto space in a video clip that made the rounds on Twitter, instead asserting that he was supportive of every decentralized project trying to facilitate global financial inclusion. However, as reported, the statements were not well received by the XRP community and Ripple chief Brad Garlinghouse who felt that the exchange had shown little support for XRP.
So Is Coinbase Planning To Relist XRP?
Despite the latest show of support by Coinbase, with no clear statement from the company that it will be relisting the token, it is safer to assume that the exchange will wait for the outcome of the legal battle with the SEC.
A subtle indication of this is that Coinbase’s filing does not mention that in 2018, the firm had done an analysis and even made an inquiry with the SEC to confirm that XRP was not a security before listing it. Consequently, it does nothing to counter the SEC’s claim that the token is a security. Instead, it strongly argues in favor of Ripple’s fair notice defense, highlighting that the lack of clear rules from the SEC prevents them from carrying out enforcement action against Ripple.
I was waiting to read about Coinbase's analysis from 2018 (which analysis apparently concluded XRP was not a security)…but it was nowhere to be seen.
But all would be forgiven if XRP was relisted tomorrow, no?
— Jeremy Hogan (@attorneyjeremy1) November 1, 2022
As previously reported, Ripple chief Brad Garlinghouse expects the court to give a ruling on the case in the first half of 2023. As such, XRP users may have to wait till then to know if Coinbase will relist the token.