According to a tweet by Bill Morgan, Coinbase took out the perspectives it cited from a letter written by the SEC, where it asked the crypto exchange to change its draft registration statement

As per lawyer and digital assets supporter Bill Morgan, the Coinbase crypto currency exchange counts on the perspectives of some senior staff of the Securities and Exchange Commission (SEC) to justify its delisting of XRP as Ether and Bitcoin continue to trade on its platform.

According to a tweet by Morgan, Coinbase took out the perspectives it cited from a letter written by the Securities and Exchange Commission on December 7, 2020, where it asked the crypto exchange to change its draft registration statement. As per him, Coinbase wants to use the extract as proof that at least it has a fair notice defense for Bitcoin and Ethereum.

Morgan further described that the revision the Securities and Exchange Commission requested did not disturb the part of the statement the crypto exchange would include in the registration, which refers to observations made by its top officials. Therefore, the crypto exchange would depend on such proof to contend a fair notice defense for at least Bitcoin and Ethereum.

While describing the situation, he referred to the significance of Bitcoin and Ether trading on Coinbase as the cause the exchange would continue to safeguard its stance. As per the lawyer, Coinbase’s draft registration statement showed that 65 per cent of the trading on its platform in the six months to June 2020 was Ethereum and Bitcoin.

He believed that even if there was a proceeding in which the Securities and Exchange Commission named Bitcoin and Ethereum as securities, there was no way Coinbase would halt trading both digital assets without being wrecked financially. Therefore, XRP was easier to sacrifice in the heat of the moment.

In January this year, Coinbase exchange delisted Ripple’s XRP from its trading platform, mentioning low usage. It notified users with XRP in their balances after delisting that they could retrieve them through the “Coinbase Recovery Phase.” The crypto exchange suspended XRP trading on its platform in January 2021 amid Securities and Exchange Commission’s legal action against Ripple’s Lab.

Morgan believes Coinbase’s recent decision to exclude XRP and the ongoing decision not to relist it are inconsistent and inconvenient.