Coinbase Wells Notice Response Gets XRP Holders’ Ire; Here’s What Happened

Crypto Market News: Crypto Exchange Coinbase’s firm response to the US Securities and Exchange Commission’s (SEC) was welcomed by the crypto trader community, as the industry’s face off with regulators in the United States intensifies. While the XRP holders are already fighting the SEC in court, the agency is also under question in the Grayscale spot Bitcoin ETF lawsuit. However, no amount of resistance from crypto businesses could guarantee the enforcement actions, while the regulatory clarity remains to be gained.

Also Read: Ripple To Face Trouble From XRP Holders in Court? Attorney Suggests This

In a recent Congressional hearing, Patrick McHenry, Chair of the House Financial Services Committee, stated that there was clearly no clarity on the regulatory framework when it came to the crypto market. McHenry made the comments while grilling SEC chair Gary Gensler.

Relist XRP Demand Over Coinbase Stance

On Thursday, Coinbase gave a formal response to an SEC Wells Notice saying the company did not violate securities laws in its United States operations. The SEC had earlier issued a notification saying it was investigating the Earn product, wallet service, and exchange operations. Reacting to this, the exchange’s CEO Brian Armstrong said the company was willing to have a “true dialogue to a workable path forward” for the crypto industry, while stressing that Coinbase was ready to defend its position in court.

However, this did not go well for the community of XRP holders. Coinbase officials said in their response that the company complied with the securities law, which is exactly the point of contention in the XRP Vs SEC lawsuit. It was only because of the lawsuit that Coinbase said it was suspending the XRP trading pairs on its platform, in a December 2020 statement. Hence, when the exchange believes it did not list securities, the traders argue that Coinbase should reinstate XRP trading on the platform.