Coinbase Resumes XRP Trading in NY After Hiatus

Officially, Coinbase has started trading XRP again in New York, ending a nine-month ban brought on by a regulatory investigation. Chief legal officer Paul Grewal of the corporation highlighted this noteworthy development on Thursday.

Grewal broke the story in a quick social media post, saying, “XRP trading on Coinbase is available again in NY.” After listening to you, we worked hard in close collaboration with the state. We are back online, so now the message may be spread. Cryptos have had a tough time navigating the regulatory landscape, so this is a huge step forward.

Trading in XRP on Coinbase in New York was halted in September 2023 when the New York Department of Financial Services (NYDFS) decided to take Ripple Labs off of its “Greenlist” of authorized custodians. This legislative action forced Coinbase to stop providing XRP to New Yorkers. Approval by the NYDFS to function as custodians in the state guarantees adherence to strict regulatory requirements for cryptocurrency companies.

New York Coinbase's IPO of XRP was met with a positive market reaction. With the news, the price of XRP increased from $0.51 to about $0.53. Through this short increase, XRP has been under downward pressure, falling from its most recent high of $0.74 on March 12, 2024.

The ongoing legal battle between Ripple Labs and the SEC in the US serves as the backdrop for this development. The SEC has been suing Ripple for a long time, claiming that XRP ought to be categorized as a security and fall within the regulatory authority of the organization. The legal procedures significantly impact the cryptocurrency market and the way exchanges deal with XRP.

A turning point in this lawsuit came when a federal court granted the SEC permission to contest a decision that said XRP was not a security when it was offered to the public. Even if Ripple won this decision momentarily, the SEC's appeal shows that the regulatory uncertainty is far from over.

The decision in this case will determine whether the SEC has authority over cryptocurrencies and if they will be subject to rules similar to those that control equities and bonds. Since 2020, when Ripple was sued by the SEC, the central dispute has been whether the business should have notified its XRP sales to the Commission. Exchanges are now wary to link with assets that are being inspected by the authorities because they are worried about facing penalties and litigation should XRP sales turn out to be unregistered securities.

The choice by Coinbase to start trading XRP again in New York shows a measured risk and their trust in their relationships and regulatory compliance initiatives. This further highlights the complexity and dynamic nature of the Bitcoin regulatory environment.

The cryptocurrency industry will closely monitor the lawsuit between the SEC and Ripple Labs for any implications that may affect the bigger market. For the time being, the restoration of XRP trading on Coinbase in New York is a key milestone in the ongoing saga of XRP's market performance and regulatory difficulties.