Coinbase’s recent decision has alarmed the crypto world about its possible implications. Technically this is an almost routine measure, but it is directly linked to arguably the most important case in the history of cryptocurrencies: Ripple’s legal battle against the SEC. Here we’ll tell you what Coinbase has announced and how this may relate to the legal battle surrounding what was once the third largest cryptocurrency.
Coinbase Wallet is removing support for XRP. It was originally scheduled to go into effect on December 5, but as Coinbase announced, starting January 2023, Ethereum Classic (ETC), Bitcoin Cash (BCH), Stellar (XLM), and XRP will no longer be supported.
This does not mean that users who own these cryptocurrencies will lose these assets, but it does mean that they will no longer be supported and cannot be managed from the Wallet like other cryptocurrencies. Starting from 2023, those who want to transfer one of these four cryptocurrencies must import it with a recovery phrase.
Is it in use? The official reason for removing support is “low usage”. Something he particularly misses in XRP, the currency formerly known as Ripple, as it is the seventh largest cryptocurrency according to CoinMarketCap. This and XRP’s involvement in a complicated case has raised many doubts. Add to this the fact that Coinbase has responded in the past. In December 2020, Coinbase’s own exchange, not Wallet, removed support for XRP.
What’s wrong with XRP and why is the lawsuit against Ripple so important? Last October, Ripple CEO stated that he expects the big trial to be finished in the first half of 2023. The Exchange Commission and American Securities, which is responsible for regulating the market.
The trial revolves around XRP’s independence and whether it is truly a decentralized cryptocurrency. Ripple argues that it does not control XRP, while the SEC says the company can manipulate XPR with other investors to increase its value. What the jury will determine will have a before and after for the crypto world as it will reflect where the line of what it describes as a decentralized cryptocurrency lies.
Who is Coinbase really going with? Here comes the confusion. It can be thought that Coinbase will side with the SEC as it has removed support for XRP from both the world’s second largest exchange after Binance and Wallet.
However, Coinbase’s official stance supports Ripple. Coinbase has positioned itself on Ripple’s arguments in its lawsuit against the SEC and has been directly involved in the legal battle as an assistant. While supporting Ripple on the one hand, on the other hand, they have removed the support for this currency as a precautionary move against what may happen.
Siren sings. Because of the complexity and importance of the trial, any move can be interpreted as a possible approach to victory by either side. Although the removal of support in this case is not necessarily directly related, Coinbase’s move has been interpreted as the belief that the SEC can win its lawsuit against Ripple.
Coinbase is participating in the trial, and some are pointing out that it might happen. internal hints for possible outcome. It is too early to predict what American Justice will decide.
Image | ivan radical