Coinbase to Relist XRP: CLO Agrees With Investment Contracts Argument
• XRP surged to a ten-month high of $0.58 last week and is currently trading around $0.51.
• Ripple returned 700 million XRP to the escrow account over the weekend, increasing liquidity in the XRP market.
• John E Deaton analyzed the Howey test on digital assets and explained that XRP, ETH, and any other altcoin are not securities.
XRP Surges To Ten-Month High
The XRP community is ecstatic over the recent price breakout from the macro logarithmic downtrend. The sixth-largest digital asset surged to a ten-month high of about $0.58 last week but has since retracted to trade around $0.51 on Monday. However, the decline is largely due to the 300 million XRP sold by Ripple in its monthly escrow release.
Increased Liquidity For XRP Market
According to on-chain data, Ripple returned about 700 million XRP to the escrow account over the weekend. Ripple uses XRP sales to incentivize On-Demand Liquidity programs and its RippleNet customers. Consequently, this increase in liquidity benefits from deeper involvement from global institutional traders for XRP’s future growth prospects.
Ripple Vs SEC Lawsuit Impacts
The outcome of the Ripple vs SEC lawsuit significantly impacts XRP’s future growth prospects as United States SEC Chair Gary Gensler argued during a recent hearing at the House Appropriations Subcommittee on Financial Services and General Government that all digital assets apart from Bitcoin are unregistered securities.
John E Deaton Analysis
Famous crypto lawyer John E Deaton analyzed the Howey test on digital assets and explained that XRP, ETH, and any other altcoin are not securities despite undertaking ICOs during their early stages when investors purchased them directly from companies issuing them instead of third parties or exchanges..
Overall, with increased liquidity in favor of greater institutional trader involvement, it appears that Coinbase may soon relist XRP as their stance towards security classification has changed after CLO agreed with “investment contracts” argument which implies that most cryptocurrencies apart from Bitcoin qualify as such under US law regulations..