JPMorgan analysts call Ripple ruling a ‘win’ for Coinbase

The recent court verdict on Ripple’s XRP token is favorable to Coinbase, as it reduces the risk of losses for the operator of a crypto exchange. JPMorgan analysts say so, The Block reports.

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\”At first glance, this decision seems to be a win for Coinbase in its lawsuit with the SEC. We believe the exchange is in a better position to profit from heightened trust and regulatory clarity, given its market leadership and industry reputation,\” said the bank’s analysts led by Kenneth Worthington.

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Ripple secured a ‘partial victory’ in its dispute with the regulator. The court ruled that XRP is not a security when sold on the secondary market. However, the ruling does not apply to the offering of the coin to institutional investors.

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JPMorgan analysts suggested that a favorable ruling regarding Ripple’s coin could be applied to 13 tokens listed on Coinbase. The SEC brought claims against them, deeming the listing of assets on the platform an unregistered securities offering.

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Analysts said that if the Ripple ruling stands, the regulator would have difficulty proving the correctness of its coin classifications.

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The JPMorgan specialists noted that part of the SEC’s charges concerns some Coinbase products such as staking services and wallets. Moreover, the SEC may appeal the Ripple case ruling, they noted.

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Analysts described the court verdict as broadly positive for the US crypto industry and expressed optimism about the sector’s prospects.

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Coinbase announced the relisting of XRP. The exchange stopped trading the asset in December 2020 shortly after the SEC filed suit against Ripple.