Prominent crypto exchange Coinbase classifies XRP (XRP) and Shiba Inu (SHIB) as currencies, emphasizing that they are designed to function as money.
According to Coinbase’s designation, Shiba Inu and XRP are currencies “specifically designed to function as money or store of value.”
Coinbase Currencies category
This comes amid debate within the XRP community regarding the token’s regulatory status. As reported earlier, Abdullah Nassif, the host of the Good Morning Crypto podcast, asked whether XRP is now officially recognized as a currency.
He made the inquiry while reacting to comments from Wall Street analyst Linda P. Jones, who stated that a U.S. federal agency considered XRP a virtual currency before the SEC v. Ripple lawsuit.
Specifically, the U.S. Financial Crimes Enforcement Network (FinCEN) referred to XRP as a virtual currency in 2015 when it imposed a fine of $700,000 against Ripple following the company’s violation of the Bank Secrecy Act.
Coinbase Recognizes XRP and SHIB as Currencies
Interestingly, data from Coinbase shows that XRP, SHIB, and seven other cryptos are classified as currencies. The list also includes Bitcoin (BTC), Dogecoin (DOGE), Bitcoin Cash (BCH), Litecoin (LTC), Stellar Lumens (XLM), Zcash (ZEC), and Dash (DASH).
Coinbase stated that the tokens are “specifically designed to be money or a store of value.” Coinbase’s classification of XRP and SHIB as currencies is important because the exchange views both assets as legitimate forms of digital currencies.
The move indicates that Coinbase believes the tokens possess the key characteristics of money, which include medium of exchange, acceptability, unit of account, store of value, and limited supply, among others.
Interestingly, these characteristics are inherent in Shiba Inu and XRP. Although the store of value feature remains uncertain due to the high volatility associated with cryptos, enthusiasts are confident that this volatility issue will eventually stabilize, making them the perfect store of value in the future.
Upcoming Crypto Clarity
There has been ongoing uncertainty regarding the regulatory status of cryptocurrencies especially as the U.S. SEC moves to give the securities tag to most tokens.
Although the SEC has never labeled SHIB a security, the regulator classified XRP as a security in its landmark lawsuit against Ripple in 2020.
It took a court ruling from a federal judge to nullify this claim. As reported earlier, the judge declared that XRP in and of itself is not a security but can be sold and offered as part of an investment contract.
The SEC recently dismissed concerns about a potential appeal on the legal classification of XRP when it acknowledged in the Binance lawsuit that crypto assets are merely computer codes and are not inherently securities.