Ripple Community Demands XRP Relisting on Coinbase as the Exchange Faces SEC Heat

Coinbase Inc. the first crypto exchange in the US to go public in April this year could face a potential lawsuit from the US Securities and Exchange Commission (SEC) for their unreleased lending product. The exchange in an official blog post revealed that the SEC intends to pursue legal action against them as they deem it as security. The exchange further claimed that it has tried establishing a dialogue with the regulatory body for over 6-months but to no avail.

The CEO of the firm Brian Armstrong took to Twitter to reveal that the exchange has received a Wells Notice from the SEC and even called out the regulatory body for their unclarity on the issue. He said,

“They responded by telling us this lend feature is security. Ok – seems strange, how can lending be security? So we ask the SEC to help us understand and share their view. We always make an effort to work proactively with regulators and keep an open mind.”

Ripple Community Reminds Coinbase of XRP Security Lawsuit

The Coinbase SEC saga could become the next chapter in SEC’s security lawsuits after Ripple. The calls for relisting XRP on Coinbase increased as the Ripple community reminded how XRP was left alone in the battle. Many even called out Coinbase for toeing the line during XRP delisting and realizing SEC’s fault now that they themselves could get entangled in a potential lawsuit.

One user wrote that it’s not the time for infighting and called upon everyone to stay united in the fight against the SEC. Ripple is currently fighting it out against the SEC in the court with several twists and turns in the case. The main attraction at this point is William Hinman, former SEC executive comments on ETH being a non-security during his tenure. A part of the deposition revealed that Hinman had informed Ripple about XRP being a security, but Ripple’s legal counsel argued that the deposition was mischaracterized and important parts of it were sealed.

Many in the XRP community accuse Hinman and SEC of colluding with Ethereum and helping the altcoin to grow its market and earn profits based on their holdings, despite knowing Ethereum conducted an ICO.

The SEC under the Biden administration seems admant on targeting Proof-of-stake, first the flawed amendments to crypto taxation was passed in the infrastructure bill, later SEC also initiated an investigation around Uniswap Labs, the creators of the largest DEX platform. Gary Gensler, the SEC chief has also revealed the agency’s plans to go after the Defi market.