JPMorgan Chase Ripple wins legal battle against SEC, which may benefit Coinbase.

JPMorgan Chase Ripple wins legal battle against SEC, benefiting Coinbase.

Compiled by: Blockchain Knight

In the past week, Ripple, the company behind XRP, has won in its legal battle with the U.S. Securities and Exchange Commission (SEC), reigniting people’s passion for the crypto industry.

The SEC had filed a lawsuit against Ripple, accusing the payment and technology company of selling XRP tokens that were similar to securities to investors.

Judge Annalisa Torres ruled in favor of Ripple, declaring that XRP was not a security when sold to the public.

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According to analysts at JPMorgan, this court ruling also seems to benefit Coinbase.

In a research report by JPMorgan, stock analysts led by Kenneth Worthington claimed that Ripple’s victory could also be a victory for Coinbase.

On June 6, 2023, the SEC filed a lawsuit against Coinbase, alleging that the exchange was operating as an unregistered securities exchange.

The SEC claimed that the exchange provided intermediary services for the trading of 13 digital assets (such as Cardano, Polygon, and Solana), which should have been registered as securities.

However, after the recent XRP ruling, the regulatory agency’s position seems to be somewhat shaken.

“If the Ripple case holds, it will be harder for the SEC to prove that these 13 tokens are securities and that Coinbase is an unregistered securities exchange, which could exempt it from certain future licensing and regulatory requirements,” said JPMorgan analysts.

The analysts believe that Ripple’s victory does not completely rule out the possibility of the SEC suing Coinbase, as the exchange is also being sued for “failure to register its Crypto Asset Staking as an offer and sale.”

“In addition, the SEC can appeal this ruling, which would further increase the uncertainty of the Ripple judgment,” added JPMorgan analysts.

In an interview with Bloomberg, Ripple CEO Brad Garlinghouse made a statement suggesting that the SEC may take some time to appeal the latest court ruling.

“According to the law, at least on this land, XRP is not a security unless the SEC has an opportunity to appeal. But this actually takes years, so we are very optimistic about this,” said the Ripple executive.

In this interview, Garlinghouse also directly criticized the strategy adopted by the SEC against the crypto industry, calling the financial regulatory agency a “bully.” He stated that the agency deliberately increases confusion in order to further strengthen its control over the crypto industry.

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