XRP Delisted, Algorand Remains: What Is The Reason For Coinbase’s Selective Approach?

As the world of cryptocurrencies evolves, so do the regulatory challenges. Coinbase, one of the largest cryptocurrency exchanges, has made a bold decision to continue trading Algorand (Algo) despite its classification as a security by the SEC. 

This move comes after Coinbase delisted XRP for similar reasons, raising eyebrows and sparking controversy. Paul Grewal, Coinbase’s Chief Legal Officer, sheds light on the reasoning behind this controversial decision.

Paul Grewal Seeks To Clear The Air

During a Crypto Law interview, attorney John Deaton raised questions about Coinbase’s approach to reviewing listing decisions. Deaton pointed out that there is confusion among XRP supporters regarding why Coinbase delisted XRP but not Algorand, despite both cryptocurrencies being characterized as securities by the SEC. 

Paul Grewal, the Chief Legal Officer at Coinbase, attempted to clarify that secondary sales of assets do not constitute securities, leading Deaton to point out that Grewal’s argument also applies to XRP. This has left XRP supporters in a state of confusion about Coinbase’s stance on the matter.

Deaton further said: “…XRP was suspended, and then we see a case against Bittrex where the SEC says Algo is also security; and, of course, there isn’t a suspension of that. Do you understand where, as XRP holders, they get frustrated or even angry that they are penalized – not that anyone wants you to de-list or suspend Algo – just, what’s your thought?”

Grewal responded to this inquiry: “I understand where folks are coming from, and I also understand where it can feel like there’s a double standard that’s been applied in a variety of circumstances.”

Grewal Defends Coinbase’s Approach

Coinbase’s Chief Legal Officer, Paul Grewal, spoke out about the exchange’s commitment to upholding the rule of law for everyone, including XRP holders, despite the confusion surrounding the exchange’s approach to listing decisions. Grewal emphasized the need for collaboration against the SEC’s recent slew of enforcement and identified the political forces behind it. 

Further, he also defended Coinbase’s decision to file an amicus brief in Ripple’s favor last November. Grewal’s comments come amid speculations of a potential partnership between Ripple and Coinbase following a recent professional meeting between the two entities.

Crypto Community Reacts

Proponents in the XRP community are still left in the dark despite Grewal’s recent comments on why Coinbase has not delisted Algo as it did with XRP. They have claimed that the Chief Legal Officer of Coinbase avoided giving a direct answer to the question, adding to the confusion surrounding the exchange’s approach to listing decisions.