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Coinbase has informed its customers that XRP trading has resumed in New York. This comes after XRP trading was suspended by the exchange for nine months due to regulatory problems.
Paul Grewal, Coinbase’s Chief Legal Officer, announced the news on X, saying XRP trading on Coinbase is now live again in New York.
XRP trading on @coinbase is available again in NY. We heard you and put in the work in strong partnership with the State. And now the word can be put out— we are back up.
— paulgrewal.eth (@iampaulgrewal) May 23, 2024
SEC Charged Ripple for Selling Tokens as Securities
The delisting of Ripple’s XRP from Coinbase started in January this year following a lawsuit by the United States Securities and Exchange Commission (SEC) against Ripple Labs. Again, the SEC claimed that Ripple Labs had been selling the tokens as securities without registering them with the agency.
This lawsuit caused an enormous scale of XRP delisting across various exchanges, including Coinbase. These exchanges were barred from trading or exchanging XRP for any fiat currency, but they could still deposit, store, and transfer the token during the suspension.
Coinbase Restores XRP Trading
Coinbase restored XRP trading for New York clients following a partnership and regulatory clearance from the state. In 2023, Judge Analisa Torres had ruled that secondary sales of XRP did not amount to trading ‘securities’ and this led exchanges to re-list the digital asset.
Coinbase was among the first to relist the asset, which attracted the attention of investors and speculators. Nevertheless, regulatory problems in some jurisdictions, including New York, persisted even after the court decision.
The New York Department of Financial Services (NYDFS) in September 2023 expelled Ripple Labs from its ‘greenlist’ of allowed companies with the authorization to custody customer assets. This action led to Coinbase’s suspension of XRP trading in New York for the past nine months.
XRP’s Current Market Price
After the recent announcement, customers can sign in to their Coinbase accounts to purchase, sell, exchange, transmit, accept, or store XRP through Coinbase ‘s website and the iOS and Android apps. In response to the news, the price of XRP rose by a marginal amount from $0.51 to nearly $0.53.
At the time of writing, XRP is trading at $0.519, and has declined by 1.76% in the last 24 hours, according to Coinmarketcap. Ripple currently holds 46.5% of the total XRP supply, with 5,258,162,324 XRP in their possession and 41.3 billion XRP locked in escrow.
Cryptopolitan reporting by Lawrence Damilola