- Coinbase’s XRP delisting sparks change in sentiment amidst ongoing legal battle.
- Bill Morgan finds it hard to stay angry at Coinbase.
- Coinbase reduces XRP holdings, signaling potential shift in asset strategy.
Bill Morgan, a prominent lawyer known for his support of XRP, recently commented on the ongoing relationship between the crypto exchange Coinbase and the XRP community. Although the Ripple-oriented exchange was clearly impacted in January 2021, as Coinbase said it was delisting XRP due to the SEC lawsuit against Ripple, Morgan belives it is getting harder to remain angry at the exchange.
His comments are in line with the vigorous legal action of Coinbase against the U.S. Securities and Exchange Commission (SEC), whereby it seeks to advance transparency and accountability.
Morgan’s comment comes after years of tension between the crypto exchange and XRP supporters. The action of delisting XRP at Coinbase was a big hit to the cryptocurrency since the exchange is among the largest in the U.S., and its move affected the holders and investors of XRP.
Nevertheless, the quote by Morgan indicates a shift in attitude. The current attempts by Coinbase to hold the SEC accountable, which were once considered a hard stance by the company, are now being acknowledged by some.
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Coinbase Takes Legal Action Over SEC’s Missing Records
Coinbase’s legal battle with the SEC has intensified following revelations that the SEC had destroyed crucial records, including text messages from SEC Chairman Gary Gensler and other senior officials. These are critical period records that are suspected to have important information on regulatory decisions regarding cryptocurrencies.
Coinbase has responded and alleged that the loss of these records is a significant setback to its legal strategy, particularly seeing how these messages were sent at the time of important events in the realm of cryptocurrency, like the FTX collapse and the changes to Ethereum to proof-of-stake.
One of the points that Coinbase has used in its argument is the inability of the SEC to maintain these records. The exchange is insisting on getting transparency and access to vital documents, which may illuminate the internal decision-making process used by the SEC.
According to court documents, the SEC acknowledged that it did not have the right equipment to search and retrieve some of the records, which sparked allegations that the watchdog agency had not been following the federal laws on record-keeping.
Coinbase’s Legal Strategy: Seeking Accountability
As part of its legal strategy, Coinbase has called for sanctions against the SEC, pushing for expedited discovery and the immediate production of all relevant records. The exchange’s Chief Legal Officer, Paul Grewal, has openly criticized the SEC for not complying with the court order and employing narrow search keywords that omitted important communications.
Following such record-keeping breaches, Coinbase is currently pursuing remedial measures, such as disciplinary measures against members of the SEC staff.
This pivot of the delisting of XRP into the current legal fight against the SEC has made some (Morgan included) reevaluate their attitude regarding Coinbase. Although the fact that the exchange previously decided to delist XRP was a bitter taste, its recent attempts at ensuring regulatory transparency have won it some degree of respect in the crypto sphere.
Coinbase’s Drastic Reduction in XRP Holdings: A Strategic Move?
Coinbase, one of the largest U.S.-based cryptocurrency exchanges, has reduced its cold wallet XRP holdings by 16.5 million XRP each. According to on-chain information provided by the Twitter account XRPwallets, the number of cold wallets and the number of XRP contained in cold wallets have decreased considerably.
Coinbase has been transferring significant quantities of XRP in the last 24 hours. It is now reduced to seven cold wallets, each with a balance of 16.5 million XRP. This extreme shift casts doubt on the strategy and how it copes with changing trends in the cryptocurrency market.
The shift toward the diminution of cold wallets is more than a logistical adjustment. Still, it is an indicator that Coinbase is realigning its strategy to digital asset management in the context of the market changes still being experienced.
It may reflect that Coinbase is reconsidering its own company policies, especially as it discusses increasing regulatory risk and market volatility. While it may frustrate some XRP holders, the shift highlights Coinbase’s evolving strategy for handling digital assets during uncertain times.
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