Coinbase recently updated its platform to categorize XRP as a cryptocurrency, specifically identifying it as one designed to function as money or a store of value. This change comes after the conclusion of Ripple's legal battle with the U.S. Securities and Exchange Commission (SEC).
Coinbase Update
This development, highlighted by @AbsGMCrypto on platform X, marks a significant shift in the perception of XRP. For years, the SEC labeled XRP as a security and tried to enforce this label through legal action. However, Coinbase's update aligns with the resolution of Ripple's legal issues, providing clarity for the market.
Ripple's Legal Battle and Its Outcome
Ripple's legal battle with the SEC concluded recently with the SEC issuing an apology to a federal judge for its use of the term 'crypto asset securities' to describe digital assets. This sheds light on the regulator's potential overreach and prompts questions about its previous regulatory methods.
Impact on Cryptocurrency's Future
Coinbase's decision to classify XRP as a currency might set a precedent for other exchanges and platforms, aiding in shaping a new narrative around XRP. Recognizing XRP as a form of money could also encourage new Ripple partnerships and further adoption of the token in various sectors, including cross-border payments and remittances.
In conclusion, the classification of XRP as a currency by major exchanges like Coinbase could shift the perception of cryptocurrencies in the market and provide clarity in their use for financial transactions.
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