Ripple CTO Reacts to Coinbase Lawsuit Prediction, What Happened?

Cover image via U.Today Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available. Read U.TODAY on Google News Ripple CTO David Schwartz joins a discussion on X, bordering on Coinbase's newly-launched prediction markets. Advertisement On Friday, Coinbase revealed it had filed lawsuits in key U.S. states, including Connecticut, Michigan and Illinois. This comes shortly after Coinbase unveiled its prediction markets powered by U.S.-based prediction markets operator Kalshi. In a systems update on Dec. 17, Coinbase said that it would begin offering its customers the ability to trade event contracts on its platform through a partnership with Kalshi. HOT Stories SBI Starts XRP Lending, Shiba Inu Whale Awakens With 53 Billion SHIB Transfer, New Ethereum Hack Revealed — Crypto News Digest Crypto Market Prediction: Will Shiba Inu (SHIB) Crash Ever End? Ethereum (ETH) Already Sniffing $3,000; Bitcoin (BTC) Price Expodes in Unexpected Volume Spike 'True Currency': Did Elon Musk Just Describe Bitcoin? Morning Crypto Report: Ripple CEO Forces XRP Reality Check for Coinbase, Shiba Inu (SHIB) Soars 5%: Fakeout Next? $444 Million in Bitcoin Land on Binance Coinbase plans to offer event-contract trading to its customers throughout the United States beginning in January 2026, hence the reason for the lawsuit. Advertisement States like Illinois have laws in place that Coinbase says seek to prevent its clients from accessing event contracts, which the cryptocurrency exchange defines as "a type of derivative instrument extensively regulated by federal law that can be traded only on federally registered exchanges in transactions facilitated by federally registered intermediaries." Ripple CTO clarifies misconception Coinbase filed its lawsuit to prevent the unlawful application of gambling laws to event contracts. An X user predicted that Coinbase might lose its lawsuits, prompting discussion on what truly defines an event contract. Advertisement You're confusing the contract with the event underlying the contract. Whether the contract is a derivative depends on the nature of the event underlying it. — David 'JoelKatz' Schwartz (@JoelKatz) December 19, 2025 Correcting a misassumption brought up in the X conversation, Schwartz responded, "You're confusing the contract with the event underlying the contract." The Ripple CTO added that "Whether the contract is a derivative depends on the nature of the event underlying it. Event contracts are defined as derivative instruments that enable parties to trade on their predictions about whether a future event which may relate to economics, elections, climate, sports, or anything else of potential commercial consequence will occur." In XRP news, XRPL Lending Protocol, a new protocol-native system that enables on-ledger lending for institutions while also allowing XRP holders to earn institutional-grade yield, is underway. Relevant amendments are expected to enter validator voting in late January 2026, marking a major step toward activating protocol-native credit markets on XRPL. #Ripple News #XRP