The XRP community’s celebration of Coinbase’s lawsuit against the SEC reflects their ongoing frustration with the regulatory agency’s stance towards the cryptocurrency. The SEC’s lawsuit against Ripple, the entity that created XRP, has seriously harmed the token’s standing and value. Despite this, XRP and other cryptocurrencies see the Coinbase lawsuit as an important step in gaining regulatory certainty and legitimacy to counter the SEC’s unclear stance on cryptocurrencies.
In its lawsuit against the SEC, Coinbase is asking the court to issue a ruling requiring the regulator to specify whether or not cryptocurrencies should be considered securities.
In his lawsuit, Coinbase’s Chief Legal Officer, Paul Grewal, calls on the SEC to respond to the industry’s persistent questions.
XRP Community Rejoices
As a result of Coinbase’s legal action against the SEC, XRP cryptocurrency supporters expressed enthusiasm and support. Since the SEC sued Ripple Labs, claiming that the business had sold XRP tokens in an unregistered security offering, the XRP community has been at odds with the regulator.
This resulted in several exchanges delisting XRP and caused its value to drop significantly. With regard to XRP’s classification, Coinbase’s lawsuit against the SEC is seen as a step toward bringing more regulatory clarity to the cryptocurrency industry.
