Read on Twitter
1/10
News Update: While @Forbes confirmed with @coinbase spokes person that they are 'considering options re: $XRP'
I've confirmed that calls have escalated to include multiple direct calls with the SEC, as well as early VC investors worried about how this will impact the IPO.
News Update: While @Forbes confirmed with @coinbase spokes person that they are 'considering options re: $XRP'
I've confirmed that calls have escalated to include multiple direct calls with the SEC, as well as early VC investors worried about how this will impact the IPO.
2/10
The reason for hesitation seems to be that normally if something was found to be a security in the US they would allow non-US customers to trade it, or it to be supported by Prime/Custody for their accredited users.
BUT,
The reason for hesitation seems to be that normally if something was found to be a security in the US they would allow non-US customers to trade it, or it to be supported by Prime/Custody for their accredited users.
BUT,
3/10
Since Coinbase is a US-entity itself (and so is Ripple), even the sale of securities to non-US users from a US entity would likely be seen as a violation of US Securities laws.
Since Coinbase is a US-entity itself (and so is Ripple), even the sale of securities to non-US users from a US entity would likely be seen as a violation of US Securities laws.
4/10
Discussions externally pointed to selling it via Coinbase Japan, but after some digging I was able to confirm that Coinbase's operations in Japan are done via their main US entity and not a separate company https://jvcea.or.jp/news/admission-info/20200302-001/
And has not received an FSA license yet.
Discussions externally pointed to selling it via Coinbase Japan, but after some digging I was able to confirm that Coinbase's operations in Japan are done via their main US entity and not a separate company https://jvcea.or.jp/news/admission-info/20200302-001/
And has not received an FSA license yet.
5/10
Other reports suggested that the sale could be done by Coinbase UK (aka CB Payments https://register.fca.org.uk/s/firm?id=001b000003O1uMmAAJ) the FCA registered entity. Where Ripple claimed to be found 'not-a-security'
But,
Other reports suggested that the sale could be done by Coinbase UK (aka CB Payments https://register.fca.org.uk/s/firm?id=001b000003O1uMmAAJ) the FCA registered entity. Where Ripple claimed to be found 'not-a-security'
But,
6/10
After further digging, I found the 'consultation paper' that $XRP relies on for that claim: https://www.fca.org.uk/publication/consultation/cp19-22.pdf
The paper lists XRP only once saying it shares some similar features to ETH. It does not draw conclusions & does not formally find XRP to not be a security.
After further digging, I found the 'consultation paper' that $XRP relies on for that claim: https://www.fca.org.uk/publication/consultation/cp19-22.pdf
The paper lists XRP only once saying it shares some similar features to ETH. It does not draw conclusions & does not formally find XRP to not be a security.
7/10
This concern of additional ambiguity was apparently mentioned directly within some circles at Coinbase.
Since Coinbase UK is critical infrastructure for Coinbase's card, SWIFT payments and international processing they are unlikely to take on risk in the eyes of the FCA
This concern of additional ambiguity was apparently mentioned directly within some circles at Coinbase.
Since Coinbase UK is critical infrastructure for Coinbase's card, SWIFT payments and international processing they are unlikely to take on risk in the eyes of the FCA
8/10
While Coinbase seems to be looking for a path of minimal impact, it is pretty clear they are baked into a corner, and all indications point to still trading suspensions or delistings if they cannot find a partial path with regulatory clarity.
While Coinbase seems to be looking for a path of minimal impact, it is pretty clear they are baked into a corner, and all indications point to still trading suspensions or delistings if they cannot find a partial path with regulatory clarity.
9/10
Even if they do find a partial path it is likely to be extremely limited, such as custodian services.
And it will likely lead to more international trade desks ending XRP support when they used Coinbase as their US settlement/counter-party.
Even if they do find a partial path it is likely to be extremely limited, such as custodian services.
And it will likely lead to more international trade desks ending XRP support when they used Coinbase as their US settlement/counter-party.
10/10
All in all, the options seem to range from bad to worse for Ripple.
All in all, the options seem to range from bad to worse for Ripple.
