Coinbase, in collaboration with the New York Department of Financial Services (NYDFS), has lifted its nine-month ban on XRP trading. This comes as a major development amidst the ongoing legal dispute with the SEC.
Paul Grewal, the chief legal officer of Coinbase, announced that customers in New York can now trade XRP tokens on the platform once again. The NYDFS has worked diligently to ensure compliance and regulatory approval for this reinstatement.
“We have heard you and worked closely with the State to bring back XRP trading on Coinbase in New York. We are thrilled to announce that we are back up and running,” stated Paul Grewal. This is a significant milestone for both XRP and Coinbase enthusiasts.
Earlier in 2021, Ripple faced a challenging situation when several crypto exchanges, including Coinbase, Bittrex, and Binance.US, delisted XRP. This occurred after the SEC filed a lawsuit against Ripple, accusing the company of selling unregistered securities. This caused disruption and uncertainty in the market.
However, the situation took a turn in 2023 when Judge Analisa Torres ruled in favor of XRP, determining that it did not qualify as securities. This ruling prompted many crypto exchanges to reverse their previous decisions and relist XRP.
Coinbase was among the first to make headlines by relisting XRP, providing hope for XRP investors who were eagerly awaiting broader market acceptance.
Despite the favorable ruling for Ripple, XRP continued to face regulatory challenges in various jurisdictions. The NYDFS was particularly stringent in its approach.
Judge Torres’ ruling did not dissuade the NYDFS from taking action. In September 2023, the New York regulators removed Ripple as one of the custody customer assets. As a result, Coinbase suspended XRP trading for New York residents.
The regulatory landscape for cryptocurrencies is complex, and New York’s regulations are particularly stringent. The state requires custodians of customer funds to meet specific security and compliance standards.
The announcement regarding the reinstatement of XRP trading reflects the collaborative efforts between state regulators and crypto exchanges. It also highlights the extent to which crypto exchanges are willing to work with regulators to ensure compliance.
Following Paul Grewal’s announcement, the price of XRP experienced a slight increase from $0.51 to nearly $0.53. Although XRP reached a high of $0.74 in March 2024, its price has fluctuated. The question remains whether XRP will be able to reach its target of $1.
At the time of writing, XRP was trading at $0.5285, representing a 0.62% decrease from the previous day. The 24-hour trading volume also dropped by 32% to $1.12 billion.
This reopening of XRP trading on Coinbase is a significant step for Ripple as it continues to navigate its ongoing legal battle with the SEC.
