Coinbase recently updated its platform to categorize XRP as a cryptocurrency, specifically identifying it as one designed to function as “money or a store of value.”
This development, highlighted in a recent post on X by Good Morning Crypto (@AbsGMCrypto), marks a significant shift in how XRP is now viewed following the conclusion of Ripple’s legal battle with the U.S. Securities and Exchange Commission (SEC).
For years, the SEC labeled XRP as a security and tried to force this label on it through a lawsuit accusing Ripple of selling unregistered securities. However, with this categorization by Coinbase, XRP is now more clearly aligned with its intended purpose, signaling a return to clarity within the market.
This shift follows an apology from the SEC to a federal judge over its use of the term “crypto asset securities.” The phrase had been employed to describe digital assets, creating an air of uncertainty around them. The SEC’s apology highlights the potential overreach in its regulatory approach, specifically in its attempt to place certain cryptocurrencies under the securities umbrella.
This misstep has raised questions about the regulator’s previous methods and opens the door for possible adjustments in the SEC’s strategy concerning cryptocurrency oversight.
We are on twitter, follow us to connect with us :- @TimesTabloid1
— TimesTabloid (@TimesTabloid1) July 15, 2023
A New Dawn for XRP
The end of the lawsuit surrounding XRP has provided a sense of relief to the cryptocurrency community. Ripple has long argued that its token was never intended to be a security. With the lawsuit no longer posing a direct threat, exchanges like Coinbase can now confidently list XRP as a currency designed for use as money or a store of value, without fear of regulatory repercussions.
This classification also has broader implications for other cryptocurrencies that have similarly faced scrutiny from regulators. Kraken recently pushed back against the SEC’s claims, and the company is asking for a jury trial to prove that the digital assets it offers are not securities.
XRP’s classification as a currency is significant, particularly in light of the years-long legal battles that Ripple has fought to establish this fact. Coinbase’s update could inspire other exchanges and platforms to follow suit, helping to shape the narrative around XRP’s functionality.
Recognizing XRP as a form of money could encourage more Ripple partnerships and further adoption of the token within various sectors, including cross-border payments, remittances, and more.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are urged to do in-depth research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
Follow us on Twitter, Facebook, Telegram, and Google News
