Key Takeaways:
- Coinbase has resumed XRP trading in New York after a suspension that began in January 2021
- The trading halt occurred as the SEC sued Ripple Labs for allegedly selling unregistered securities valued at $1.38 billion.
In a significant development for cryptocurrency enthusiasts in New York, Coinbase has announced the reopening of XRP trading on its platform. Paul Grewal, Coinbase’s Chief Legal Officer, shared the news on social media.
The decision to resume XRP trading in New York marks a major turnaround for Coinbase, which had previously suspended the token’s trading due to legal uncertainties stemming from the SEC’s lawsuit against Ripple.
The initial suspension significantly impacted Coinbase’s market presence, as users were unable to trade or convert their XRP to fiat currency, although they could still deposit, store, and transfer the token.
Prior to this announcement, New York residents seeking to trade XRP had to rely on exchanges registered with the New York State Department of Financial Services (NYDFS) and authorized to operate in the state, such as Bitstamp, Bitfinex, and Bittrex.
New York’s stringent cryptocurrency regulations, including the notorious BitLicense, have long been a challenging and costly hurdle for crypto companies operating in the state.
The reopening follows a pivotal court ruling in July 2023, which determined that secondary sales of XRP were not classified as securities. This ruling prompted Coinbase and other exchanges to relist the token. However, despite the broader market’s positive response, New York remained an exception until now.
Ripple’s protracted legal battle with the SEC has raised numerous questions about the regulatory status of XRP and its impact on the broader cryptocurrency market. The SEC’s stance has been that XRP should be classified as a security, which Ripple has contested vigorously.
While the reopening of XRP trading is a milestone, it’s important to note that certain restrictions still apply. As of the latest update, Coinbase has not supported XRP trading in Japan and Singapore. However, for New York residents, the reintroduction of XRP trading represents a significant win, providing them with more options and flexibility in the cryptocurrency market.
