Following the recent big win recorded by Ripple and XRP against the Securities and Exchange Commission (SEC), JPMorgan has evaluated the development, pointing out how it would favor Coinbase in the long run.
It should be noted that the Judge ruled that XRP sales on exchanges are not securities. JPMorgan analysts have made this fact the basis of their evaluation.
Read Also: Ripple CTO David Schwartz Reveals Vital Action He Failed to Take Following XRP Victory
Going by a report by JPMorgan analysts, Coinbase could leverage the verdict in its ongoing lawsuit with the SEC. They are of the opinion that the implication of the favorable decision won’t be limited to only XRP, but will provide greater clarity and confidence for investors and regulators.
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JPMorgan Analysts Explain: Verdict Positive for Coinbase
According to JPMorgan analysts, the XRP lawsuit final judgment is positive for Coinbase it could be applied to 13 coins actively traded on its trading platform, which were deemed as securities by the SEC back in June. The list includes Cardano (ADA), Solana (SOL), among others.
JPMorgan analyst noted:
“If the Ripple lawsuit continues, it will seem more difficult for the SEC to show that the 13 tokens are securities and Coinbase is an unregistered securities exchange, thus exempting it from certain future licensing and regulatory requirements.”
Coinbase Not Completely Out of Danger Yet
According to the analysts, although the judgment reduces risks for Coinbase in its ongoing litigation, it’s not completely out of danger yet because its staking and wallet products are also part of the SEC lawsuit.
Read Also: Ripple CEO Points at Trustworthy Recap to Clear Confusion on What the Court’s Decision Means
Coinbase suspends Cryptocurrency Staking For Certain Customers in the US
It can be recalled that the US-based crypto exchange Coinbase recently suspended its staking services for customers that reside in California, New Jersey, South Carolina, and Wisconsin.
Until the lawsuit between the trading platform and the SEC is brought to a reasonable conclusion, it’s not expected to lift the crypto staking services restriction on the jurisdictions mentioned above.
It’s also worth noting that the firm relisted XRP on its trading platform on the same day the crypto staking services were restricted. Similarly, other prominent trading platforms such as Binance.US also relisted XRP.
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