The debate around the status of XRP has suddenly been dragged back into the news this week in light of a rumour that suggests finally, XRP could be added to Coinbase Pro. Through 2018, XRP investors have been holding on to the notion that their beloved cryptocurrency could be listed on Coinbase. A listing on Coinbase was expected to totally skyrocket the value of XRP, allowing the currency to fly past $3.00 and beyond.
Of course, as we know, through the year XRP never managed to gain a full listing on Coinbase, simply because of a chain of lawsuits against Ripple, accusing them of trading an unregistered security in XRP. Coinbase can’t list securities, so, that was that.
Now as it stands, with the lawsuits ongoing, XRP is still not classified as a security, nor is it classified as not a security, so the debate continues. Very recently, Coinbase did announce that they would be exploring 30+ digital assets that they hope to list on Coinbase Pro, in the wake of an improvement to Coinbase’s service which means they can now list more tokens than ever before.
Prior to September, Coinbase offered Bitcoin, Bitcoin Cash, Ethereum, Litecoin and Ethereum Classic. Part of the problem was that Coinbase had very strict rules for what could be added to their exchange, however in September, the company underwent a revamp that means now, Coinbase has slightly more relaxed listing regulations - allowing for tokens like XRP to be added, eventually. According to the Coinbase blog:
“As we announced in September, Coinbase’s goal is to offer support for all assets that meet our standards and are fully compliant with local law. Over time, we intend to offer our customers access to greater than 90% of all compliant digital assets by market cap. To make this vision a reality, we evaluate prospective assets against our Digital Asset Framework to assess factors like security, compliance, and the project’s alignment with our mission of creating an open financial system for the world.”
Their latest announcement includes XRP as well as other tokens such as EOS, Cardano, Stellar and OmiseGo.
Note, that this announcement only highlights that Coinbase are considering XRP - there is still quite a bit of work to be done by the Coinbase research team before we can expect to see XRP listed on Coinbase Pro:
“Adding new assets requires significant exploratory work from both a technical and compliance standpoint, and we cannot guarantee that all the assets we are evaluating will ultimately be listed for trading. Furthermore, our listing process may result in some of these assets being listed solely for customers to buy and sell, without the ability to send or receive using a local wallet.”
CZ Speaks out about XRP
The debate surrounding XRP as a security has hit the headlines once again this week, as the CEO of Binance, Changpeng Zhao (CZ) has spoken out about his opinion on XRP.
According to Crypto Globe, CZ has taken to Twitter to say:
“The court case may take years. But if XRP is ruled as a security, it would seriously hurt a lot of US users, and to a certain extent, other users around the world too. It certainly doesn't look like a security to me, but that's just one person's opinion.”
CZ is speaking in reference to the class action lawsuit that is currently lay with the Federal Court in the United States against Ripple.
As we can see, CZ, like many does not believe that XRP is a security. As a matter of fact, much of this ‘securities association’ has come from disgruntled investors within XRP. Ripple themselves, the team behind the production of XRP have stated that XRP is not a security and have provided plenty of evidence to reinforce their point.
We must note that XRP is not the only cryptocurrency that struggles with it’s identity:
“What CZ is saying sounds correct. The problem is that the SEC has been very quiet about the status of all cryptocurrencies with the exception of saying that Bitcoin is not a security, that Ether looks like it is not a security NOW (no comment on whether it may have been in the past), and that most tokens that were sold via Initial Coin Offerings (ICOs) are likely to be securities. And now that there is a class action lawsuit that will be considering the status of XRP, it makes sense for the SEC to wait and see what the court has to say on this subject. And this case could take a long time (when you include appeals) to be ultimately decided.”
Well, it’s likely that XRP will be listed on Coinbase Pro regardless of the outcome of this class action lawsuit (we hope). For now, it remains an uncertain time for XRP and XRP investors. This is a cryptocurrency that has huge potential to grow and indeed will grow, but it’s going to be a very bumpy ride and quite a long wait in the process. Once the shackles of the court are removed and once XRP is set free to accrue some value, we do expect XRP investors to be a little more positive once again.
This all comes down to the curse on crypto, a lack of regulation, a problem that will hopefully one day be addressed in a way that does allow cryptocurrency to flourish.
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