Coinbase has stealthily changed its risk warning, once again fueling rumors that XRP will soon be back to trading on the largest U.S. crypto exchange. The modification comes amid the release of its earnings report on Tuesday and at a time when the crypto industry is dealing with harsh regulatory pressure.
Axios first on the change in Coinbase’s risk disclosures. The news outlet found the surprise buried in the crypto exchange’s annual filing, and it signals that Coinbase is ready for a fight against the overreaching U.S. Securities and Exchange Commission (SEC). A newly added line in the risk warnings states that the exchange will only delist cryptocurrencies deemed securities by the SEC if a court ruling supports the regulator’s request:In addition, Coinbase said Tuesday that it won’t delist anything “pending a final judicial determination as to that crypto asset’s proper characterization.” Just recently, Coinbase CEO Brian Armstrong on Twitter that the exchanges’ “staking services are not securities. We will happily defend this in court if needed,” showing the exchanges new willingness to fight the US regulator.We may determine not to remove a particular crypto asset from Coinbase Spot Market even if the SEC or another regulator alleges that the crypto asset is a security.
Will Coinbase Skyrocket XRP Price With A Re-Listing?
The change in the risk warning theoretically opens the door very wide to the decision to relist XRP on Coinbase. After all, Coinbase suspended XRP in January 2021 in light of the SEC’s lawsuit against Ripple Labs – without a court decision.Although XRP had already dropped 60% after the SEC complaint on December 22, 2020, the price dropped another 30% the following week after Coinbase’s delisting. This shows the massive impact of Coinbase on the price of a crypto asset.
In the case of a listing, the price jump is also called the “Coinbase effect”, and this is exactly what the XRP community is hoping for now.