XRP Shines as Coinbase Grapples with SEC

Key Points:

• XRP price turns positive
• Coinbase receives Wells’s notice
• SEC refuses asset clarification
• Ripple anticipates a positive verdict

The XRP price has turned positive after meandering between positive and negative territory in the last 24 hours. Now leading the broader cryptocurrency market higher, XRP has shown resilience in the midst of a regulatory crackdown on digital assets. XRP maintains its lead as the single-best performer among the top-10 cryptos over the past week, with a gain of over 24%. 

XRP’s ‘We Told You So’ Moment 

The XRP army is showing little sympathy for U.S.-based crypto exchange Coinbase. According to CEO Brian Armstrong, Coinbase has received a Wells notice from the U.S. SEC for its staking and asset listings, a tell-tale sign that a lawsuit is right around the corner.  

What has the army miffed is that Coinbase didn’t flinch before delisting XRP from its trading platform amid Ripple’s regulatory woes. Coinbase cited “low usage” of the coin for its delisting, but at the time XRP was the seventh-biggest cryptocurrency. Now that the shoe is on the other foot, XRP investors are finding some pleasure in seeing Coinbase squirm. 

Coinbase in its dealings with the securities watchdog has asked the regulator to identify any assets on its platform that resemble securities. However, the SEC has rebuffed this request, only suggesting that the company broke investor-protection laws, leaving Coinbase in the dark.  

Cryptocurrency market leaders expect that Coinbase will emerge victorious in its upcoming legal battle, an outcome that’s similarly likely for Ripple. One sure way that Coinbase can get back on the good side of XRP investors is to relist the No. 6 cryptocurrency once again, at which time they can share war stories about the SEC. 

Ripple’s Fight 

Meanwhile, more positive signs are emerging in XRP-issuer Ripple’s own battle with the SEC. Ripple President Monica Long is quoted by CNBC as saying she feels “very hopeful” about the case and anticipates a positive verdict this year. According to Long, Ripple has the law on its side. The SEC has alleged that XRP has all the makings of a security, an accusation that Ripple has rebuffed.