Deaton Recounts Coinbase’s XRP Journey: From Legal Clarity to Self-Certify Futures
April 4, 2025
XRP and John Deaton
Following Coinbase’s filing to self-certify XRP futures, Attorney John Deaton gave a recap highlighting the exchange’s engagement with XRP.
On April 3, Coinbase announced that its derivatives arm, Coinbase Derivatives, filed to launch self-certify XRP futures in the U.S. The move, according to Coinbase, aims to give investors a more regulated and capital-efficient way to gain exposure to XRP, which it referred to as “one of the world’s most liquid assets.”
We’re excited to announce that Coinbase Derivatives has filed with the CFTC to self-certify $XRP futures – bringing a regulated, capital-efficient way to gain exposure to one of the most liquid digital assets. We anticipate the contract going live on April 21, 2025. Stay tuned…
— Coinbase Institutional ️ (@CoinbaseInsto) April 3, 2025
Coinbase Engagement with XRP
Consequently, Deaton recounted Coinbase’s engagement with XRP and how the exchange correctly analyzed that the coin was not a security.
XRP is Not a Security
According to Deaton, Coinbase’s team of experienced securities lawyers analyzed XRP using its internal digital asset framework and concluded that XRP was not a security.
In January 2019, the exchange informed the SEC of its findings to ensure its analysis corresponded with the commission’s view of XRP. This confirmation was necessary at the time because the exchange planned to list XRP. Interestingly, the SEC did not dispute Coinbase’s findings because its internal enforcement lawyers had previously conducted a similar analysis. The commission published an XRP Howey Analysis Memo on June 13, 2018, but it never concluded that XRP was a security. This publication was made a day before former SEC official William Hinman gave the controversial speech declaring Ethereum was no longer a security.
Coinbase Lists and Delists XRP
A month after Coinbase met with the SEC, the exchange listed XRP on February 26, 2019. Notably, it promoted XRP’s use, alongside USDC, for free international money transfers.
Less than two years later, the SEC sued Ripple and two of its executives, claiming XRP was a security. In the lawsuit, the commission alleged that all XRP transactions were securities, irrespective of how they were acquired or sold. Following this stringent action, Coinbase and other U.S. exchanges delisted XRP to avoid potential sanctions from the SEC.
In defense, a group of over 75,000 XRP holders joined the case as amici curiae. Three thousand investors from this group submitted affidavits claiming they did not know about Ripple when they first purchased XRP. According to Deaton, the ruling Judge, Analisa Torres, cited the affidavits and agreed with Ripple and Coinbase that XRP was not a security in itself. Shortly after the judge issued this decision in July 2023, Coinbase and other exchanges relisted XRP.
Self-Certify XRP Futures
Less than two years later, Coinbase has announced another support for XRP. This time, it plans to launch self-certify futures for the coin. If the CFTC approves the filing, contracts for the XRP futures will debut on Coinbase on April 21, 2025. The move comes over a week after Ripple agreed to drop its cross-appeal, aligning with the SEC’s decision to drop the multi-year lawsuit.
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