As the lawsuit between the U.S. Securities and Exchange Commission (SEC) and Ripple draws to a close, Paul Grewal says Coinbase may relist XRP.
Paul Grewal – Chief Legal Officer, Coinbase
Chat with Tony Edward – YouTube Channel Host Think about encryptionGrewal said there is still some legal uncertainty to give a definitive answer on the relisting.
Ripple sold unregistered securities (XRP) for $1.3 billion, the SEC said. The lawsuit was filed in December 2020 against the company, Chairman Chris Larsen and CEO Brad Garlinghouse.
Will Coinbase relist XRP?
On January 19, 2021, Coinbase delisted XRP in response to the SEC-Ripple lawsuit. Other crypto entities followed suit, including Bitwise and Bitstamp…
Coinbase said the decision to delist was based on its Digital Asset Framework Policy, which assesses factors such as securities compliance.
When asked about the delisting, Grewal revealed the company’s standard policy of regularly evaluating assets based on learning new information. However, he acknowledged that the situation has disappointed some XRP holders.
Commenting on the current status of the lawsuit, Grewal praised Ripple’s defense team for a job well done in countering the SEC’s arguments. He added that he believes in the efforts and is motivated enough for Coinbase to file a pro-Ripple brief in the lawsuit.
“Great job in promoting the SEC and raising serious questions about the entire SEC theory behind this lawsuit.”
Asked whether Coinbase would relist XRP, Grewal said “it’s possible.” However, the ultimate decision depends on the outcome of the case, and in particular the basis for the ruling – the judge’s legal arguments assessing whether the appeals court is in favor of relisting.
“A lot will depend on the details of the court’s decision. I know it will upset some people very much, but as a public company we have a duty of care…”
What Grewal Thinks About the SEC vs. Ripple Lawsuit
The lawsuit between the SEC and Ripple highlights inconsistencies in the agency’s policy and regulatory approach.
For example, Ripple’s fair notice defense argued that XRP is similar to Bitcoin and ETH, and the defendants had no reason to believe that they violated securities laws without issuing notices to the contrary.
That is, if BTC and ETH are not securities, and there is no notice that XRP is any different, it means that the respondent did not knowingly violate the securities laws.
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