Coinbase, in collaboration with the New York Department of Financial Services (NYDFS), has reinstated XRP trading after a nine-month ban. This is a major development for Coinbase and XRP enthusiasts, especially considering the ongoing legal battle with the SEC.
Paul Grewal, Coinbase’s chief legal officer, announced that customers in New York can now trade XRP tokens on the platform. He emphasized the hard work and strong partnership between Coinbase and the state of New York to ensure compliance and regulatory approval.
In 2021, Ripple faced a challenging situation when several crypto exchanges, including Coinbase, delisted XRP due to a lawsuit filed by the SEC. The SEC accused Ripple of selling unregistered securities, causing disruption and uncertainty in the market.
However, in 2023, Judge Analisa Torres ruled in favor of XRP, stating that it did not constitute securities sales. This ruling prompted many crypto exchanges to reverse their earlier decisions and relist XRP. Coinbase was among the first to reinstate XRP trading, providing a ray of hope for XRP investors.
Despite the favorable ruling, XRP continued to face regulatory challenges in various jurisdictions, particularly from the NYDFS. In September 2023, the NYDFS removed Ripple as one of the custody customer assets, leading Coinbase to suspend XRP trading for New York residents.
New York’s regulatory landscape for cryptocurrencies is known for its rigidity, as it prioritizes the security and compliance standards for its citizens. The re-enlistment of XRP on Coinbase reflects the collaborative effort between state regulators and crypto exchanges, highlighting the willingness of exchanges to adapt to regulatory requirements.
Following Paul Grewal’s announcement, the price of XRP experienced a slight increase from $0.51 to nearly $0.53. Although XRP has seen moments of upward movement since reaching a high of $0.74 in March 2024, the question remains whether it can reach the targeted $1.
Currently, XRP is trading at $0.5285, experiencing a 0.62% decrease from the previous day, with a 32% drop in 24-hour trading volume to $1.12 billion.
The reopening of XRP trading on Coinbase is a significant step for Ripple as it continues its legal battle with the SEC.