The cryptocurrency exchange Coinbase has sided with the U.S. Securities and Exchange Commission (SEC) in its case against Ripple Labs, Inc. Coinbase recently stated that it would suspend trading of XRP, the native cryptocurrency of Ripple, due to “uncertainty” surrounding the SEC’s lawsuit against Ripple. The SEC has accused Ripple of conducting an unregistered securities offering, and is seeking to have the court order Ripple to pay back any profits it has made from the illegal sale of XRP.
Coinbase’s decision to suspend XRP trading was a major blow to Ripple, which has seen its market capitalization drop significantly since the SEC lawsuit was announced. The cryptocurrency exchange has made it clear that it is prioritizing regulatory compliance, and is standing with the SEC in this case.
Coinbase’s decision is a sign that even the most influential players in the cryptocurrency space are taking the SEC’s stance on digital assets seriously. As more exchanges and companies follow Coinbase’s lead, it’s likely that other digital assets may also be affected by the SEC’s actions.
