Following Coinbase’s delisting of Ripple Labs’ native token, XRP, from its trading platform, the XRP community has launched a campaign calling for the asset’s return. The delisting was because of the ongoing court battle between the US Securities and Exchange Commission (SEC) and Ripple Labs over the issuance and sale of the XRP token.
Relist XRP Trends Again
In a Twitter post, John. E Deaton, the XRP community attorney representing holders of the asset in the prolonged court tussle between SEC and Ripple, posted definitions of terms used by the regulator in its court filing. Deaton noted that the intentions of “investments” and “contracts” as used in the filing by the SEC are crucial to the court ruling.
Meanwhile, Coinbase’s chief legal officer (CLO) Paul Grewal has reacted to the renewed Relist XRP trends on Twitter. The CLO expressed his support for the legal opinions of the embattled crypto firm fighting the US financial watchdog’s lawsuit.
However, Coinbase has reportedly filed for an amicus curiae brief supporting Ripple to have XRP relisted, but all efforts have failed. Meanwhile, the XRP community drew its inspiration from Grewal after the Coinbase CLO wrote to echo his sentiment by stating that he agreed with Deaton’s opinion of what defines an investment contract.
Also read:According to him, the XRP community attorney is right because investment contracts are expected to include investment and contract in their definitions. The XRP community attorney opined that an investment contract is one of the most widely misunderstood legal definitions of the law among social media commenters.
An investment contract is a legal term passed by Congress in the 1933 Act. Since its approval as law, digital assets and software code were not listed in the 1933 Act.
Thus, in all the SEC’s cases against Ripple and others, investment contracts were only used as defined by the Supreme Court in the 1946 Howey case.
Will Coinbase Relist XRP?
Going by history, Deaton revealed that there was never a time when the sale of a single digital asset has deemed a security. As a result, a crypto asset like XRP, which is a software code, cannot be a security.
In the case of Telegram, the GRAM token, which the SEC labeled security was not what the regulator thought, Deaton added. Furthermore, the XRP attorney noted that the ETH ICO is an unregistered security offering and that Ripple may have sold XRP numerous times as an unregistered security.
Therefore, Deaton argued that all altcoins start as securities after their first issuance. But after that, he added that there is no legal condition to call further secondary market transactions as securities sales.
Meanwhile, even if Coinbase CLO agrees with Deaton, the relisting of XRP will be unlikely. Grewal revealed in a recent interview that the XRP relisting has no specific timeline and several factors.
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