Coinbase Reinstates XRP Trading for New Yorkers; Asset Price Reacts Positively
Summary:
Coinbase reopens XRP trading for New Yorkers after a nine-month pause, following the U.S. Securities and Exchange Commission's lawsuit. The move comes after Judge Analisa Torres declared in 2023 that secondary sales of XRP are not securities sales. This decision prompted Coinbase and other exchanges to relist XRP, yet regulatory challenges persisted, particularly in New York. The relisting had a positive impact on XRP's price, which saw an increase from $0.51 to nearly $0.53.
Paul Grewal, the Principal Legal Officer of Coinbase, broke the news on May 23 that XRP trading is once again live for New Yorkers on their crypto exchange, putting an end to a break of nine months. In a concise social media post, Grewal revealed, "XRP trading on Coinbase has been resumed in NY. Your voices have been heard, we've worked intensively with the State to make it happen, now let the word be spread: we're back online."
Back in 2020, the U.S. Securities and Exchange Commission (SEC)’s lawsuit left XRP in a tumultuous position, attracting scrutiny from government regulatory bodies and centralized exchanges alike. Several centralized exchanges including Coinbase, Bittrex, and Binance.US, delisted XRP after Ripple Labs was accused by the SEC of selling unregistered securities. However, they reversed their decision and re-enlisted the digital asset once Judge Analisa Torres declared in 2023 that secondary XRP sales were not to be taken as securities sales.
When Coinbase relaunched the token, it created a buzz in the market as XRP investors and spectators eagerly anticipated similar moves from other major exchanges. Nonetheless, despite the court's verdict and the token’s reintroduction on American platforms, XRP still had to overcome regulatory obstacles in certain areas, including Japan and New York.
In September 2023, the New York Department of Financial Services (NYDFS) delisted Ripple Labs from its approved list of companies - the "Greenlist" - that are sanctioned to hold consumers' assets, leading Coinbase to pause XRP trading for New Yorkers. To receive the privilege of acting as a custodian for a customer's money within New York, every crypto firm and entity needs to apply and earn individual approval from the NYDFS.
Related: Transactions on the XRPL on-chain shot up by 108% in Q1 2024
The news positively impacted XRP’s price, pushing up the daily candle and nudging the price from $0.51 to nearly $0.53 as of now. But, the price of XRP has been struggling with a consistent downward trend since hitting its recent peak of $0.74 on March 12, 2024.
Published At
5/23/2024 8:32:48 PM
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