Bill Morgan, who is qualified to practice law in both the UK and Australia, recently expressed his disapproval of Coinbase due to its handling of XRP. Morgan’s criticism comes despite his support for Coinbase in its ongoing legal battle with the U.S. Securities and Exchange Commission (SEC).
While responding to an XRP community member asking American attorney John Deaton if this might be a good time to buy Coinbase (NASDAQ: COIN) stock, Morgan outlined his grievances against Coinbase. He accused the exchange of failing to distribute Songbird (SGB) tokens that were airdropped to its users, an action he perceives as a disservice to XRP holders.
He also criticized Coinbase’s decision to delist XRP and its subsequent refusal to relist the coin. According to Morgan, this decision is inconsistent with the treatment of other cryptocurrencies that the SEC has labeled as securities, which remain listed on Coinbase. He also pointed out that this decision contradicts the exchange’s own legal documentation regarding secondary market trading.
Coinbase’s decision to delist XRP came in the wake of the SEC’s lawsuit against Ripple, initiated in December 2020, which alleged that XRP is an unregistered security. Despite the exchange filing an amicus curiae brief in support of Ripple’s fair notice defense, Coinbase has not relisted XRP, even in the face of calls to do so.
Interestingly, after the SEC filed charges against Coinbase on 6 June 2023 for operating as an unregistered securities exchange, broker, and clearing agency and labeled several cryptocurrencies listed on the platform as securities, Coinbase did not delist these coins as it had done with XRP. Instead, the exchange defended the practice of crypto secondary market trading. In response to the SEC’s Wells Notice, Coinbase argued that secondary market transactions of cryptocurrencies on its platform fail all four prongs of the Howey test.
While some Ripple and XRP enthusiasts have urged XRP holders to support Coinbase in its legal battle against the SEC, citing the adage “The enemy of my enemy is my friend,” Morgan has made it clear that he does not share this sentiment.
He maintains that he will not forget Coinbase’s actions against XRP until the exchange relists the coin, indicating a steadfast stance in his criticism of Coinbase’s treatment of XRP holders.