The Impact of SEC Lawsuit on XRP Adoption and the Potential Ripple Effect
Explore the significant impact of the SEC lawsuit on XRP adoption, as CryptoLaw founder John Deaton highlights the damage caused and the potential ripple effect. Find out how Coinbase's decision to delist XRP reshaped the landscape of cross-border payments.
Posted 10 months ago in Altcoins
John Deaton, founder of CryptoLaw and attorney for XRP holders, sheds light on the significant consequences of the SEC lawsuit for XRP adoption in the United States. Deaton highlights the damage caused by the lawsuit in response to Coinbase's revelation that over one million verified users hold USDC. Prior to the lawsuit, Coinbase supported both USDC and XRP for cross-border payments, but had to delist XRP after the SEC claimed it was a security.
Coinbase's initial listing of XRP in 2019 allowed users to leverage the token alongside USDC for free cross-border transfers. However, the SEC's complaint against Ripple in 2020 led to Coinbase's decision to delist XRP to comply with regulatory requirements for its planned IPO. As a result, USDC became the sole token for international money transfers on the platform.
Deaton speculates that if the SEC lawsuit hadn't occurred, Coinbase could have reached one million verified users holding XRP. Recent data supports this possibility, as XRP has shown increased trade volume and buying activity on Coinbase since its relisting in July. Despite the setback caused by the lawsuit, XRP continues to gain traction on the platform.
While the SEC lawsuit has undoubtedly impacted Ripple and XRP, Deaton emphasizes that its effects extend beyond Ripple, hindering three years of potential adoption for the cryptocurrency.
Last updated 9/9/2023, 3:05:47 AM
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