Coinbase to Relist XRP as CLO Agrees with Investment Contract Argument

Summary of Coinbase Relisting XRP

  • XRP surged to a ten-month high of about $0.58 last week, though the price has since retracted.
  • Ripple returned 700 million XRP to its escrow account over the weekend.
  • US SEC Chair Gary Gensler argued that all digital assets apart from Bitcoin are unregistered securities.

Coinbase Relist XRP Looms as CLO Agrees with „Investment Contracts“ Argument

The XRP community is ecstatic over the recent price breakout from the macro logarithmic downtrend. The sixth-largest digital asset surged to a ten-month high of about $0.58 last week but has since retracted to trade around $0.51 on Monday. However, the decline is largely due to the 300 million XRP sold by Ripple in its monthly escrow release.

According to on-chain data, Ripple returned about 700 million XRP to the escrow account over the weekend. Ripple uses XRP sales to incentivize On-Demand Liquidity programs and its RippleNet customers. Consequently, the XRP market benefits from deeper liquidity due to increased involvement from global institutional traders.

Impact of Ripple vs SEC Lawsuit

The outcome of the Ripple vs SEC lawsuit significantly impacts XRP’s future growth prospects. United States SEC Chair Gary Gensler argued during a recent hearing at the House Appropriations Subcommittee on Financial Services and General Government that all digital assets apart from Bitcoin are unregistered securities. Gensler explained that almost all crypto assets have a group of people working towards their success, thus qualifying as a security.

Analysis by Crypto Lawyer John E Deaton

Famous crypto lawyer John E Deaton analyzed the Howey test on digital assets and explained that XRP, ETH, and any other altcoin are not securities, despite undertaking ICO during their early stages.“When the investor in Howey bought the [mango] grove, he bought it directly from the Howey Company. If that same investor had sold the [mango] grove to a second buyer y

Conclusion

The success or failure of Ripple’s legal battle against US regulators will determine whether or not it can relist its native token -X RP -on top exchanges like Coinbase Pro and Binance US in 2021/2022