Paul Grewal, Chief Legal Officer at Coinbase, recently detailed the conditions under which Coinbase might reconsider listing XRP, Ripple's native token. The exchange suspended XRP trading in 2020 following the SEC's lawsuit against Ripple and has maintained this stance despite growing community demand for reconsideration.
Key Factors Influencing XRP Relisting Decision
In an interview with Thinking Crypto, Grewal emphasized that even a favorable court ruling for Ripple wouldn’t guarantee immediate relisting. Coinbase would assess:
- Judicial Reasoning: The court’s legal rationale behind the decision.
- Basis of Ruling: Whether the judgment clarifies XRP’s regulatory status.
- Appeal Risks: Likelihood of the ruling being overturned in higher courts.
"We have a responsibility as a publicly listed company to tread carefully... with respect to any token subject to federal litigation."
— Paul Grewal, Coinbase CLO
Background and Current Status
- Coinbase halted XRP trading in January 2021, citing regulatory uncertainty.
- XRP remains stored on Coinbase but inactive for trading.
- Grewal praised Ripple’s defense strategy, noting Coinbase’s amicus brief supporting Ripple in 2022.
Legal Implications and Industry Impact
The case’s outcome could set a precedent for how crypto assets are classified in the U.S.:
👉 How the Ripple-SEC case affects crypto exchanges
- A prolonged appeals process is expected, regardless of the initial verdict.
- The SEC’s broader stance on crypto securities remains contentious, as seen in Coinbase’s own regulatory challenges.
FAQ Section
Q: When did Coinbase delist XRP?
A: Trading was suspended in January 2021 following the SEC’s lawsuit against Ripple.
Q: What needs to happen for Coinbase to relist XRP?
A: A favorable court ruling, clear regulatory guidance, and Coinbase’s internal risk assessment.
Q: Does Coinbase still support XRP storage?
A: Yes, users can hold XRP on Coinbase, but trading remains disabled.
Q: Could the SEC appeal a pro-Ripple ruling?
A: Yes, either party may appeal, potentially extending the case for years.