The future of XRP is hanging in the balance as regulatory scrutiny, institutional interest, and market dynamics converge. At the center of this pivotal moment stands Coinbase, one of the most influential players in the U.S. crypto ecosystem. With its leadership in shaping industry standards and its potential role in relisting XRP, Coinbase may ultimately determine whether XRP thrives—or fades—on American soil.
The Congressional Crypto Hearing: A Turning Point for Regulation
In a significant development for digital asset policy, executives from eight major cryptocurrency firms are set to testify before the U.S. House Committee on Financial Services. This high-profile hearing underscores Congress’s growing focus on establishing a clear regulatory framework for digital assets—a necessity as blockchain technology continues to reshape global finance.
The committee's agenda centers on "The Challenges and Benefits of Financial Innovation," reflecting both caution and curiosity about crypto’s transformative potential. Among the key witnesses:
- Alesia Haas, CFO of Coinbase Global
- Jeremy Allaire, CEO of Circle
- Sam Bankman-Fried, CEO of FTX Trading
- Chad Cascarilla, CEO of Paxos
- Dennelle Dixon, CEO of the Stellar Development Foundation
Their testimonies could shape how lawmakers define digital assets legally—particularly whether they classify as securities—and how innovation can coexist with investor protection.
👉 Discover how leading platforms are influencing crypto regulation and market access.
Coinbase Takes the Lead in Shaping Crypto Policy
As the largest U.S.-based cryptocurrency exchange and a publicly traded company, Coinbase has positioned itself not just as a marketplace but as a thought leader in regulatory advocacy. Beyond compliance, it actively shapes industry norms through initiatives like the Crypto Rating Council (CRC)—a self-regulatory body formed in 2019.
The CRC includes prominent members such as Anchorage, Kraken, Grayscale Investments, Bittrex, and Circle. Its mission? To bring transparency to asset classification by assessing whether specific cryptocurrencies exhibit characteristics of securities under U.S. law—particularly the Howey Test, which determines if an investment qualifies as a security.
“An asset that exhibits many features aligned with the Howey Test factors receives a score of 5—indicating a higher likelihood of falling under U.S. securities regulations.”
“Conversely, an asset with few such features scores a 1—suggesting minimal exposure to securities law.”
It's important to note: the CRC’s ratings are not legally binding nor recognized by any government agency. They do not constitute legal advice but serve as a risk assessment tool for exchanges and investors navigating regulatory uncertainty.
Why XRP’s CRC Score Matters: A 4 Out of 5 Security Risk
Among the 28 cryptocurrencies evaluated by the CRC so far, XRP received the highest score: 4 out of 5, signaling that it displays strong indicators of being a security. This places XRP at the top tier of regulatory risk—above even EOS, which scored 3.75 despite settling an SEC lawsuit over unregistered securities offerings for $24 million.
This rating carries weight. While not a legal verdict, it reflects industry perception and influences exchange decisions. When Coinbase delisted XRP in December 2020 following an SEC lawsuit against Ripple Labs, it cited regulatory uncertainty—not technical or security concerns.
The CRC’s assessment reinforces why major platforms remain cautious. For XRP to return to mainstream U.S. exchanges, it must overcome both legal hurdles and reputational ones shaped by these influential ratings.
Ethereum’s Lower Score Highlights the Contrast
For comparison, Ethereum (ETH) received a CRC score of just 2 out of 5, despite ongoing debate about its status. Critics point to Ethereum’s 2014 presale and early centralized development as potential red flags under securities law. Yet, the market and many regulators treat ETH as a commodity.
Ripple has long argued that if Ethereum isn’t classified as a security, then neither should XRP be—especially given their similar decentralized evolution over time. However, the CRC’s higher rating for XRP suggests structural differences in token distribution, corporate involvement, and use case that continue to raise regulatory eyebrows.
JPMorgan’s Bold Take: Coinbase Could Unlock XRP Adoption
In a surprising twist, JPMorgan Chase—a traditional financial giant—has entered the conversation. In a recent research report, JPMorgan’s North American equity team highlighted XRP’s unique value proposition in cross-border payments, noting its efficiency compared to legacy systems like SWIFT and its complementary role alongside stablecoins.
More strikingly, the report stated:
“If Ripple wins its case against the SEC and XRP is relisted on major platforms like Coinbase, widespread adoption could follow.”
This is a powerful endorsement. It suggests that institutional acceptance hinges not just on legal clarity but on exchange accessibility. And no exchange holds more sway in the U.S. market than Coinbase.
👉 See how institutional interest is reshaping crypto liquidity and exchange strategies.
Frequently Asked Questions (FAQ)
Q: Does Coinbase’s CRC rating legally classify XRP as a security?
A: No. The Crypto Rating Council’s score is an internal risk assessment tool. It does not have legal authority or replace official rulings from the SEC or courts.
Q: Why did Coinbase delist XRP?
A: Coinbase removed XRP from trading in December 2020 due to the SEC’s lawsuit alleging unregistered securities sales. The decision was based on compliance protocols during periods of regulatory uncertainty.
Q: Can XRP be relisted on Coinbase?
A: Yes—if the SEC litigation concludes in Ripple’s favor and regulatory clarity emerges. Coinbase has indicated it evaluates assets continuously for potential relisting.
Q: What would it take for XRP to get a lower CRC score?
A: Greater decentralization, reduced corporate control over issuance and promotion, and clearer utility independent of Ripple Labs could influence future reassessments.
Q: Is JPMorgan investing in XRP?
A: There is no public evidence that JPMorgan holds or plans to invest in XRP. Their analysis focuses on XRP’s technological potential, not direct financial participation.
Q: How does the Howey Test apply to cryptocurrencies?
A: The Howey Test examines whether an investment involves pooling money into a common enterprise with expectations of profit from others' efforts. If all elements are met, the asset may be deemed a security.
Final Outlook: Coinbase Holds the Keys
While Ripple fights its legal battle in court, the path to mainstream revival runs through Coinbase. As a gatekeeper to millions of U.S. retail and institutional investors, its policies—driven by internal frameworks like the CRC—carry outsized influence.
A favorable court ruling for Ripple could open the door. But only Coinbase’s decision to relist XRP would signal full market rehabilitation and trigger broader adoption across other platforms.
In this new era of crypto regulation, innovation isn’t just about technology—it’s about trust, compliance, and access. And right now, Coinbase holds the keys to XRP’s future.
👉 Explore how top exchanges are defining the next chapter of digital asset legitimacy.