The ongoing legal battle between Ripple and the U.S. Securities and Exchange Commission (SEC) has captured the attention of the global crypto community. Now, a new development has reignited speculation: Coinbase CEO Brian Armstrong has publicly expressed support for Ripple, fueling fresh rumors that XRP could soon return to the world’s largest U.S.-based cryptocurrency exchange.
This endorsement comes at a pivotal moment for XRP and the broader digital asset industry. As regulatory scrutiny intensifies, high-profile figures like Armstrong stepping into the conversation signals a growing push for clarity, fairness, and innovation in crypto regulation.
Brian Armstrong Voices Support for Ripple
On October 26, Brian Armstrong took to social media to comment on Ripple’s legal struggle with the SEC. In his post, he noted that the case appears to be “going better than expected,” highlighting a shift in the regulatory landscape.
Armstrong pointed out that the SEC seems to have realized that aggressively targeting the crypto industry—and by extension, retail investors—has proven politically unpopular. Ironically, he added, it's often the very investors the SEC claims to protect who are now speaking out against its actions.
His remarks were seen as more than just casual observation—they were interpreted as a subtle but significant show of solidarity with Ripple, a company long caught in regulatory crosshairs.
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Could XRP Be Returning to Coinbase?
The possibility of XRP being relisted on Coinbase has been a hot topic since late 2020, when the exchange suspended trading of the asset following the SEC’s lawsuit against Ripple. That decision triggered a wave of delistings across U.S. platforms and led to a sharp drop in XRP’s price.
However, recent signals suggest a potential reversal may be on the horizon:
- In September, users noticed XRP briefly appearing on Coinbase’s mobile trading app.
- While Coinbase Pro later clarified this was due to a technical error, the incident sparked renewed speculation.
- Industry reports suggest internal discussions about XRP relisting may already be underway.
Though no official announcement has been made, Armstrong’s supportive comments add credibility to these rumors. Given Coinbase’s influence, even a hint of an upcoming listing can move markets.
The Power of the "Coinbase Effect"
Historically, any cryptocurrency added to Coinbase experiences what’s known as the “Coinbase Effect”—a significant price surge driven by increased visibility, liquidity, and investor trust.
Relisting XRP would mean:
- Greater accessibility for millions of U.S.-based investors.
- Enhanced legitimacy, as Coinbase listings are often viewed as a regulatory green light.
- Potential price volatility, with analysts predicting strong upward momentum post-listing.
Even without formal approval, just being associated with Coinbase can boost market sentiment. And if XRP does return, it could set a precedent for how other embattled assets are treated under evolving U.S. crypto policy.
Ripple vs. SEC: A Landmark Legal Battle
The SEC filed its lawsuit against Ripple Labs in December 2020, alleging that XRP was sold as an unregistered security. The case has since become one of the most closely watched legal battles in crypto history.
Key developments include:
- A federal judge ruling that XRP is not inherently a security when sold to retail investors.
- Ongoing disputes over institutional sales and whether they violated securities laws.
- Growing pressure on the SEC to clarify its stance on digital assets.
This partial victory gave Ripple—and the wider industry—a major win. It reinforced the idea that not all tokens are securities and emphasized the need for nuanced regulation rather than blanket enforcement.
Coinbase’s Own Regulatory Challenges
Coinbase hasn’t been immune to regulatory pressure. In September, the SEC threatened legal action over Coinbase’s planned LEND product—a crypto lending program that never launched. Armstrong responded sharply, accusing the SEC of creating an “unfair playing field” by targeting innovative firms while ignoring others offering similar services.
Ultimately, Coinbase paused the product launch but made its stance clear: it intends to fight for sensible regulation.
Earlier this month, the company released a policy paper titled “Digital Asset Policy Proposal: Securing America’s Financial Leadership.” In it, Coinbase called for:
- A unified regulatory framework for digital assets.
- Clear rules distinguishing between securities and non-securities.
- The creation of a dedicated crypto regulator—separate from existing agencies like the SEC.
This proposal aligns with broader industry demands for clarity and innovation-friendly policies.
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FAQ: Your Questions About XRP and Coinbase Answered
Q: Why did Coinbase delist XRP in 2020?
A: Coinbase removed XRP from its platform following the SEC’s lawsuit alleging it was an unregistered security. To comply with U.S. regulations, many exchanges suspended trading to avoid legal risk.
Q: Has XRP been declared legal?
A: Not fully—but in a major 2023 ruling, a judge determined that XRP is not a security when sold to retail investors on public exchanges. This was a significant win for Ripple and the crypto industry.
Q: Will XRP definitely return to Coinbase?
A: There is no official confirmation yet. However, Brian Armstrong’s public support and internal sightings of XRP on the app suggest it’s being seriously considered.
Q: What is the "Coinbase Effect"?
A: It refers to the sharp price increase many cryptocurrencies experience after being listed on Coinbase. The effect stems from increased exposure, investor trust, and access to a large user base.
Q: How does SEC regulation affect crypto investors?
A: Unclear or inconsistent rules create uncertainty, discourage innovation, and limit investment options. Clear frameworks help protect consumers while fostering growth.
Q: Can other exchanges list XRP now?
A: Yes—many international platforms never delisted XRP. Some U.S.-based fintech apps have also begun offering it again following court rulings.
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Final Thoughts: A Turning Point for Crypto Regulation?
Brian Armstrong’s support for Ripple goes beyond corporate camaraderie—it reflects a growing consensus among industry leaders that heavy-handed regulation harms innovation and consumer choice.
As more voices call for balanced oversight, the Ripple vs. SEC case could become a catalyst for change. And if Coinbase does relist XRP, it would send a powerful message: that utility-focused digital assets deserve space in regulated markets.
For investors, developers, and policymakers alike, this moment underscores the importance of clear, forward-thinking rules that protect users without stifling progress.
The future of crypto in America may well depend on how cases like Ripple’s are resolved—and whether platforms like Coinbase continue pushing for reform.
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