Coinbase Ends Nine-Month Ban on XRP Trading in New York
In a major development for the cryptocurrency world, Coinbase has announced the relisting of XRP trading in New York after a nine-month ban. This move comes as Coinbase has collaborated closely with the New York Department of Financial Services (NYDFS) to ensure compliance and regulatory approval.
Paul Grewal, Coinbase’s chief legal officer, expressed his excitement about the relisting, stating, “XRP trading on Coinbase is available again in NY. We heard you and put in the work in a strong partnership with the State. And now the word can be put out—we are back up.” This news is a significant milestone for both XRP and Coinbase enthusiasts.
The ban on XRP trading was initially imposed in 2021, when several crypto exchanges, including Coinbase, delisted the token due to a lawsuit filed by the United States Securities and Exchange Commission (SEC). The SEC alleged that Ripple, the company behind XRP, had sold unregistered securities. This legal battle caused disruption and uncertainty in the market.
However, the situation changed in 2023 when 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 relist the token, providing hope for XRP investors who were eager to see broader market acceptance.
Despite the favorable ruling, XRP still faced regulatory challenges in various jurisdictions, including New York. In September 2023, the NYDFS decided to remove Ripple as one of its custody customer assets, causing Coinbase to suspend XRP trading for New York residents.
The regulatory landscape in New York is particularly strict, with the state requiring custodians to adhere to stringent security and compliance standards for customer funds. The relisting of XRP in New York reflects the collaborative efforts 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, rising from $0.51 to nearly $0.53. While 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 target of $1.
Currently, XRP is trading at $0.5285, down 0.62% from the previous day, with a 32% drop in 24-hour trading volume to $1.12 billion.
The relisting of XRP in New York marks a significant step for Ripple as it continues its legal battle with the SEC.