Coinbase, the largest U.S.-based cryptocurrency exchange, may have given the XRP community one of the biggest reasons to cheer.
In an interview with Thinking Crypto host Tony Edward, Coinbase’s Chief Legal Officer (CLO) Paul Grewal hinted that the exchange might relist XRP if the verdict in the two-year-long Ripple vs. SEC lawsuit comes in the former’s favor.
“I am very eager as anyone else to see how the court rules and what I can say, as soon as we have the ruling, we will put in our process to see if we need to revisit our listing decision.”
However, the CLO added that the conditions for the same will depend on the basis for the ruling, the judge’s legal reasoning, and Coinbase’s assessment of whether or not the appeals court will uphold the decision.
Coinbase announced the delisting of XRP from the exchange in December 2020, soon after the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs over claims that the token was a security.
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Notably, the controversial case is moving to its conclusion, as the verdict is speculated to come in the first half of 2023. Ripple CEO Brad Garlinghouse earlier said that he was confident of Ripple’s chances.
The verdict could have significant implications for the wider cryptocurrency market. The laws governing the status of cryptocurrencies as commodities or securities are still not very clear.
There were early signs that after XRP, U.S. regulators were training their guns on the second-largest crypto in the ecosystem, Ethereum [ETH].
Recently, New York State Attorney General Letitia James filed a lawsuit against the crypto exchange Kucoin for issuing tokens that fit the definition of securities. One of the tokens mentioned in the lawsuit was ETH.
Meanwhile, anticipating a favorable decision, whales started to amass XRP in bulk. The number of addresses holding between 1,000 to 1 million coins increased significantly over the past month, as per Santiment.
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A reason for the accumulation could be that most sellers were giving away tokens at a discount, as shown by falling transaction volume in profit.
The 30-day MVRV Ratio treaded in negative territory, which lent further credence to the observation. The negative MVRV Long/Short Difference highlighted that short-term holders will realize higher profits.
Moreover, at the time of writing, XRP jumped 4.55% in the 24-hr period, as per CoinMarketCap.