JPMorgan: Ripple Court Decision Is a Win for Coinbase
Date: 2023-07-17 Author: Karina Ziganova Categories: CRYPTO PAYMENTS
The court's decision in the case of Ripple and the US Securities and Exchange Commission (SEC) may benefit the Coinbase cryptocurrency exchange. This is the conclusion reached by JPMorgan analysts.
"At first glance, it seems that this decision is a victory for Coinbase in its recent SEC lawsuit. We see that Coinbase is in a better position to benefit from increased trust and regulatory clarity, that Coinbase is often found in the market and respects its position in the industry," JPMorgan analysts believe.
How the Ripple Case Will Help Coinbase
According to JPMorgan analysts, the outcome of the Ripple case was favorable for Coinbase. The decision could have a positive impact on the 13 tokens actively traded on Coinbase. They, according to the SEC, are securities.
While Ripple's decision narrows down the risks for Coinbase, it doesn't offer a significant increase in growth for the company. This is because Coinbase's staking and wallet products are also part of the SEC lawsuit, in addition to the 13 tokens.
"In addition, the SEC may appeal Ripple's decision, which will further increase the uncertainty of the consequences of Ripple's decision," JPMorgan added.
However, in general, JPMorgan analysts remain optimistic about the crypto industry in the foreseeable future. Moreover, the outcome of the case will benefit the U.S. regulatory framework.
Lawsuit against Coinbase
Recall that the US Commission in lawsuits against crypto exchanges Coinbase and Binance listed a number of tokens that, in its opinion, are securities. This makes the program an investment contract and therefore a security.
Regarding Coinbase, the regulator said that the platform has never registered as a broker or securities exchange. According to the regulator, the main services offered by Coinbase, including prime brokerage, exchange trading and staking programs, violate the rules for handling securities.
