Coinbase resumes XRP trading

Coinbase has announced the resumption of XRP trading for users in New York State. Paul Grewal, Coinbase’s chief legal officer, made the announcement on May 23, stating that, after a nine-month hiatus, the exchange’s customers can once again trade the asset.

“XRP trading on Coinbase is available again in NY. We listen to you and work closely with the State. And now you can spread the word: we agree,” Grewal said in a brief post on the X social media platform.

The resumption of XRP trading comes after a long period of uncertainty and legal battles. In 2020, the United States Securities and Exchange Commission (SEC) sued Ripple Labs, accusing the company of selling unregistered securities. As a result, XRP, Ripple’s associated cryptocurrency, has faced a series of challenges. This includes delisting by several centralized exchanges such as Coinbase, Bittrex, and Binance.US.

The situation only began to change in 2023, when judge Analisa Torres ruled that secondary sales of XRP did not constitute securities sales. This decision led several exchanges to relist the asset. Coinbase was one of the first to take this measure, gaining prominence in the market and providing relief for XRP investors and speculators.

Regulatory obstacles

Despite the favorable court ruling, XRP continued to face regulatory hurdles in some jurisdictions.

In September 2023, the New York Department of Financial Services (NYDFS) removed Ripple Labs from its “Green List” of companies approved to custody customer assets. This forced Coinbase to suspend XRP trading for New York residents.

The NYDFS “Green List” is a designation that allows companies to operate as custodians of client funds in the state. Therefore, delisting imposed severe restrictions on Ripple’s operations in New York.

Therefore, the resumption of XRP trading on Coinbase in New York is an important milestone, indicating progress in the relationship between regulators and cryptocurrency companies. Grewal highlighted the collaborative effort between Coinbase and New York State to enable this resumption. The measure is seen as a positive sign for the market, suggesting a possible easing of regulatory restrictions.

Another detail is that the cryptocurrency market reacted positively to the announcement. The price of XRP experienced a slight increase, going from $0.51 to almost $0.53 shortly after the news.

However, despite this immediate positive reaction, the price of XRP has faced a downtrend since its most recent high of $0.74, recorded on March 12, 2024. Cryptocurrency market volatility continues to be a challenge , but the resumption of trading on Coinbase in New York could provide crucial support for the asset’s price.