JPMorgan Says Ripple Court Decision Is a Victory for Coinbase

Key Insights

• JPMorgan analysts believe that the court decision in the Ripple case could benefit Coinbase.
• The outcome of the Ripple case could have a positive impact on the 13 tokens actively traded on Coinbase, which are considered securities by the SEC.
• Despite the potential benefits, Coinbase still faces uncertainty as the SEC may appeal Ripple’s decision.

The court decision in the case of Ripple and the US Securities and Exchange Commission (SEC) may benefit the Coinbase cryptocurrency exchange. JPMorgan analysts came to this conclusion in an interview with Bloomberg.

At first glance, this decision appears to be 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 frequently seen in the market and respects the position in the industry,” JPMorgan analysts said.

How could the Ripple case help Coinbase?

According to JPMorgan analysts, the outcome of the Ripple case was favorable for Coinbase. The decision could positively impact the 13 tokens actively traded on Coinbase. They are, according to the SEC, securities.

While Ripple’s decision narrows 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, further adding to the uncertainty about the consequences of Ripple’s decision,” JPMorgan added.

However, in general, JPMorgan analysts remain optimistic about the crypto industry in the foreseeable future.

In an interview with MarketsXplora, ARK Invest CEO Cathie Wood said she is positive on Coinbase in light of a court ruling against the SEC and in favor of Ripple’s XRP token.

Moreover, the outcome of the case will benefit the US regulatory framework.

Read also: Ark Invest Sells $12 Million Coinbase Shares Amid Rally

What is SEC lawsuit against Coinbase?

Recall that the US Commission, in lawsuits against crypto exchanges Coinbase and Binance, listed a number of tokens, which, in its opinion, are securities. This makes the program an investment contract and therefore a security.

Regarding Coinbase, the regulator stated 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 dealing with securities.