District Judge Paul Engelmayer dismissed a lawsuit filed in March last year by New York businessmen against Coinbase and its CEO Brian Armstrong.. The plaintiffs accused the site of illegal trading in securities, as well as the lack of registration as a broker-dealer. The judge clarified that the claims of the plaintiffs, as set out in the amended complaint, contradicted their original allegations.
Coinbase General Counsel Paul Grewal tweeted that Coinbase management is grateful to the federal court for its careful consideration of the case. The court decision confirmed, according to the lawyer, already indicated in the user agreement on the exchange website: “Coinbase does not have ownership of client assets.”
The dismissal of Christopher Underwood's lawsuit was a small victory for Coinbase, so the crypto community called on the exchange to re-list trading pairs with XRP, one of the top 10 cryptocurrencies by market capitalization.. To draw the attention of the trading platform to this issue, the supporters of the coin used a special hashtag #RelistXRP.
Coinbase Halts XRP Trading Due to U.S. Securities and Exchange Commission (SEC) Lawsuit Against Ripple. The exchange delisted XRP out of concern that the regulator could sue Coinbase for facilitating illegal trading in the alleged securities.
The management of the exchange has not yet announced its readiness to re-list XRP for trading amid growing user demand. Community requests to re-list XRP have intensified after attorney John Deaton, representing XRP holders, succeeded in obtaining clarification from the court that LBRY’s LBC token can be sold on the secondary market, despite being recognized as a security by officials.