John Deaton, CryptoLaw founder and an attorney for XRP holders, calls attention to the significant damage brought on by the SEC lawsuit to XRP adoption in the United States.
The CryptoLaw founder said this in response to Coinbase's fun fact that over one million of its verified users hold USDC.
Deaton noted in a tweet that the damage caused by the SEC lawsuit to XRP’s adoption in the United States was significant.
The CryptoLaw founder drew attention to the fact that before the Ripple case, Coinbase supported two coins for cross-border payments: USDC and XRP. Deaton provided a screenshot demonstrating this.
Coinbase initially listed XRP on its platform in February 2019 and two months later began leveraging the token with USDC to expand into cross-border payments. The innovation allowed Coinbase customers to send funds for free to any Coinbase user anywhere in the world using XRP and USDC.
Then, in December 2020, the SEC filed a complaint against Ripple and two of its executives, alleging unregistered security offerings in the form of XRP.
According to Deaton, Coinbase felt obligated to delist XRP from its platform since the SEC argued XRP was a security, including its secondary market sales independent of Ripple, and Coinbase needed the SEC's approval to go public and issue an IPO.
After XRP was delisted from the platform, USDC was the sole coin left and, thus, became the primary token for use in international money transfers.
The CryptoLaw founder speculates that if the case had not occurred, Coinbase might have reached one million verified users holding XRP.
This might be so, as XRP has gained traction on Coinbase in the roughly two months since it was relisted on the platform in July this year.
According to a recent Kaiko study for August, XRP topped the top 10 altcoins in average trade volume on Coinbase. Kaiko mentioned that XRP saw stronger buying activity on Coinbase in the last month.
As reported, Deaton stated that the SEC lawsuit harmed not only Ripple but also XRP, costing it three years of adoption.