One man’s gain is another man’s loss. A few days later the american justice decision in the case against Rippleeveryone is now wondering what the consequences of this partial victory for the XRP issuer might be. For the experts at JP Morgan, there’s no doubt that, in the short term, all this will benefit the entire domestic crypto industry, but especially Coinbase which has established itself as one of the industry’s leading players. Could Brian Armstrong’s platform, which is itself in proceedings against the SEC, pull the chestnuts out of the fire and come out on top?he big winner in this case ? Deciphering this theory made by JP Morgan Chase & Co.
Coinbase in favorable ballot according to JP Morgan…
JP Morgan is one of the world’s largest banks, and its analysts are increasingly interested in everything to do with crypto. In order to anticipate possible market reactions to the court ruling concerning Ripple, the teams at the Bank of New York looked into the matter.
Under the leadership of Kenneth Worthington, they began by pointing out that, on the face of it, it’s not not only Ripple who could benefit from the situation, but also and above all another important player in the ecosystem: Coinbase. Here is an extract note deciphered by the press across the Atlantic:
« At first glance, the decision appears to be a victory for Coinbase in its recent SEC lawsuit. We believe Coinbase is best placed to benefit from the increased confidence and clarity of the regulations, given its market-leading position and good reputation in the industry. »
Indeed, the American exchange is also in dispute with the SECwhich could be weakened by the latest developments in the case.
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… but not out of the woods yet, as the SEC may appeal
Even if the decision is upheld within a certain frameworkthe XRP token is not a financial security, it could be that all of the 13 other cryptos involved in the dispute between Coinbase and the regulator are concerned. JPMorgan teams explain:
« If the Ripple case continues, it will be more difficult for the SEC to demonstrate that the 13 tokens in question are financial securities, and therefore that Coinbase is an unregistered stock exchange. This would thus exempt it from certain future licensing and regulatory requirements. »
By ricochet, what’s good for Ripple could also be good for Coinbase which should, in the short termbe safe from a fall in its share price. But it’s not all over yet. Far from it! Indeed, in its legal proceedings against the SEC, it is not only a question of unregistered securities, but also of staking and financial products which are not necessarily affected by this recent decision. This somewhat tempers the enthusiasm of the bank’s analysts:
« Coinbase is not yet completely out of the woods in its own lawsuit. What’s more, the SEC may yet appeal against the decision in the Ripple case, which could add to regulatory uncertainty. »
Finally, when it comes to evaluating crypto exchange, JP Morgan remains cautious and assigns it a neutral rating pending further developments. As forcrypto ecosystem as a whole, the bank remains optimistic for the long term and believes that the final decision in this matter will help to clarify the much-needed sector. What better way to keep it going until the next bull run? JP Morgan has already considered this…
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