- Coinbase has resumed XRP trading in New York after previously withdrawing it in 2021 due to an SEC lawsuit against Ripple.
- Coinbase’s chief legal officer Paul Grewal announced the move on Twitter, stating that they worked in partnership with the state of New York to reintroduce XRP trading.
- XRP is the eighth largest cryptocurrency by market cap, and its price remained relatively flat after the announcement.
Crypto exchange Coinbase has resumed XRP trading in New York state. The company had removed XRP in early 2021 due to an ongoing lawsuit against the cryptocurrency’s creators.
Background on XRP and Ripple Lawsuit
XRP is the eighth largest cryptocurrency with a market capitalization of $29.5 billion. It was created by fintech company Ripple to facilitate cross-border money transfers.
In 2020, the SEC filed a $1.3 billion lawsuit against Ripple alleging they sold XRP as an unregistered security. This caused many exchanges like Coinbase to delist XRP.
In 2021, a judge ruled that Ripple’s retail XRP sales were not securities. However, some institutional sales did constitute securities. This was a partial win for Ripple.
Coinbase Brings Back XRP After ‘Strong Partnership’ With New York
On May 23, 2024, Coinbase’s Chief Legal Officer Paul Grewal announced on Twitter that XRP trading is available again in New York.
Grewal stated that Coinbase worked in “strong partnership” with New York state to reenable XRP. New York has historically had stricter policies around cryptocurrencies.
The move comes as the SEC faces ongoing criticism about unfair crypto industry crackdowns. XRP’s price has remained relatively flat around $0.53.
Conclusion
The return of XRP trading to Coinbase in New York signals improving regulatory clarity around cryptocurrencies. However, the ongoing Ripple lawsuit still casts uncertainty around XRP’s long-term status.
