Is Coinbase set to bring XRP back to its platform?

Rumors are circulating that Coinbase will be re-establishing XRP trading on its platform soon.

Last Thursday, XRP was relisted on Coinbase Pro, with XRP / USD, XRP / EUR, XRP / GBP and XRP / BTC pairs available for trading. But it quickly came to an end, with Coinbase saying this was the result of a “technical problem” and that XRP trading remains suspended.

As previously announced, Coinbase has suspended trading in XRP. Due to a technical issue, XRP was temporarily visible on the Coinbase Pro mobile app to some customers, but was not tradable.

– Coinbase Pro (@CoinbasePro) September 10, 2021

On top of that, a Reddit user noted that the Coinbase app says “trading is not yet available.” While it was said before, “this asset is not supported by Coinbase”.

Granted, both cases fall into the category of weak evidence, especially since Coinbase has denied the rumors. But given Coinbase’s recent showdown with the SEC, re-listing XRP would be an appropriate response.

Why did Coinbase remove XRP in the first place?

In December 2020, the SEC filed a lawsuit against Ripple for selling $ 1.3 billion worth of unregistered securities. The regulator alleges that sales of its XRP token were conducted illegally over a period of eight years.

At that time, massive uncertainty surrounded Ripple and XRP. And given the SEC’s track record of winning, especially in the crypto industry, you’d be forgiven for thinking it was over for Ripple.

Several Ripple partners have shared this view, including MoneyGram, and many exchanges such as Bitstamp have also left the ship. But Coinbase’s decision to ditch XRP was the hardest pill to swallow, given that it is America’s largest exchange.

A Jan. 19, 2021 statement from Coinbase attributed the ruling directly to the pending lawsuit.

“In view of the recent SEC action against Ripple, trading on our XRP order books has been suspended in all regions. You can still deposit and withdraw XRP. Although XRP funds will remain securely stored in your account after suspending transactions, you will not be able to buy, sell or convert.

But since then, rather than looking back, Ripple’s defense has exposed significant flaws in the SEC’s claims. Which leads many to assume that the regulator is somewhat baffled as to the next step in this matter.

The discovery process revealed a glaring lack of good practice on the part of the regulator. Some accuse the agency of making things up as they go, with the term “regulation through litigation” being used to describe the farce.

Is this a response to the recent conflict with the SEC?

Last week Coinbase CEO Brian Armstrong tweeted about his meeting with the SEC. Armstrong said he raised the subject of a new loan facility with the regulator, but faced accusations that the program violates securities law.

Armstrong said they refused to explain how they came to this conclusion. And even threatened with legal action if Coinbase continues to offer this service to its users.

Having had a taste of the unreasonable approach taken by the SEC, some say it is right for Coinbase to reinstate XRP trading.

Whether or not that happens is a guess.