Coinbase, the popular cryptocurrency exchange, may soon relist XRP after the Chief Legal Officer, Paul Grewal, agreed with the argument that XRP is not an investment contract.
The XRP community has been pushing for the relisting after the Securities and Exchange Commission (SEC) filed a lawsuit against Ripple, the company behind XRP, claiming that XRP is an unregistered security. The outcome of the lawsuit will significantly impact XRP’s future growth prospects, and SEC Chair Gary Gensler has argued that all digital assets apart from Bitcoin are unregistered securities.
However, famous crypto lawyer John E Deaton analyzed the Howey test on digital assets and explained that XRP, along with ETH and other altcoins, are not securities, despite undertaking ICO during their early stages. This argument was echoed by Coinbase’s Chief Legal Officer, giving hope to the XRP community that Coinbase may soon relist the asset on its trading platform.
This news comes as XRP recently surged to a ten-month high of about $0.58, and the XRP market benefits from deeper liquidity due to increased involvement from global institutional traders. Ripple uses XRP sales to incentivize On-Demand Liquidity programs and its RippleNet customers, further enhancing XRP’s market liquidity.