Ripple: XRP classified a ‘crypto security’ in lawsuits against Coinbase
XRP is a 'crypto security' in one of the recent lawsuits against Coinbase
Quick overview
- XRP faced significant setbacks after being included in a class action lawsuit against Coinbase, labeling it as an unregistered security.
- Coinbase argues that the lawsuit lacks merit and questions the rationale behind Oregon's AG Dan Rayfield's actions.
- A federal judge previously ruled that XRP is not a security when sold to retail investors, adding to the confusion surrounding its regulatory status.
- Coinbase Derivatives plans to start trading XRP futures, which could enhance institutional adoption and provide a regulated investment option.
Live XRP/USD Chart
XRP, the cryptocurrency associated with Ripple, sustained considerable damage when Oregon’s AG Dan Rayfield included it with several other tokens in a class action lawsuit against Coinbase on the list of unregistered securities.
Coinbase, in its defense statement, claimed that the AG was trying to bring back some form of regulation through enforcement, which begs the question of why Rayfield, who chased reality, let go of his reasoning and slapped such a lawsuit that is essentially devoid of merit.
The designation XRP as ‘crypto security’ is a contradiction, considering the token is said to have some regulatory clarity. A federal judge ruled in 2023 that XRP is not a security when sold to retail investors on public exchanges and must be accepted.
This was after the SEC dropped their appeal, along with former Chair Gary Gensler, who stepped down earlier this year.
Meanwhile, XRP futures trading by Coinbase Derivatives and an increase in open interest are two factors that might be driving the token’s bullish momentum.
Although the cryptocurrency market experienced improvements and technical indicators are signaling buy opportunities, a loss of support at $2 could accelerate losses to the 200-day EMA at $1.95.
Coinbase Derivatives, a division of the Coinbase cryptocurrency exchange, may begin trading XRP futures contracts on Monday. Coinbase declared Coinbase Derivatives had submitted a request to “self-certify” XRP futures to the Commodities Futures Trading Commission (CFTC) on April 4.
If approved, this development would facilitate institutional adoption of XRP, providing investors access to a regulated instrument for one of the most liquid digital assets in the market.
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