In a Twitter thread between Joseph Young, analyst and investor and Changpeng Zhao, the founder and CEO of Binance, the two engaged in a conversation regarding the Ripple combined class-action lawsuit. The case has been going on for a long time and has been bouncing back and forth between the State and Federal Court, pleading a decision on whether XRP is a security or not.
Young, in his tweet, connected the case with the leading cryptocurrency platform, Coinbase, not adding XRP as a trading asset on its exchange. He stated that the lawsuit might be playing a role in the platform’s decision to resist the listing of XRP. In his words:
“Coinbase has been listing everything in crypto apart from XRP. It says it may add every asset above a certain level like the stock market but still no XRP. Savage.
On a serious note, it’s likely the pending federal court case against Ripple is holding them back for now.”
Here, Changpeng Zhao aka CZ, propagated his view on the matter, stating that the case could go on for years. Furthermore, if the plaintiffs win and XRP is tagged as security, then a lot of US users would face consequences, he implied. The whole tweet read:
“The court case may take years. But if XRP is ruled as a security, it would seriously hurt a lot of US users, and to a certain extent, other users around the world too. It certainly doesn’t look like a security to me, but that’s just one person’s opinion.”
To this, Young reverted and mentioned Ripple’s legal team’s decision to remove the legal suit to the apex court. He also pushed it as a point that clearly displays the company’s confidence in winning the case.
At present, the financial regulatory body of the US Securities and Commission Exchange [SEC] does not rule in favor of XRP being a security. Earlier this year, a former employee of the SEC claimed that the digital asset does not pass the four criteria of the Howey Test, hence, certainly does not qualify to be registered under securities.
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