- The cryptocurrency market is abuzz with the latest developments surrounding Ripple (XRP) and Coinbase.
- Coinbase has announced the resumption of XRP trading for its New York users, marking a significant regulatory milestone.
- Paul Grewal, Coinbase’s Chief Legal Officer, shared the news on social media, emphasizing the strong partnership with the state.
Coinbase Resumes XRP Trading in New York: A Major Regulatory Milestone
Coinbase Reinstates XRP Trading in New York
In a significant move for the cryptocurrency market, Coinbase has announced that it will resume XRP trading for its New York users. This decision comes after a prolonged suspension that began in January 2021, following the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Ripple Labs. The lawsuit alleged that Ripple had conducted unregistered securities sales worth $1.38 billion. The suspension of XRP trading on Coinbase was a direct consequence of these regulatory challenges.
Impact on XRP Trading and Market Sentiment
Coinbase’s decision to reinstate XRP trading is a noteworthy development for the crypto community. The move signals a potential easing of regulatory pressures and could pave the way for other exchanges to follow suit. Paul Grewal, Coinbase’s Chief Legal Officer, highlighted the collaborative effort with New York state regulators in a social media post, stating, “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.”
Market Reaction and Price Stability
Despite the positive news, XRP’s market price remained relatively stable. As of the time of writing, XRP was trading at $0.5296, reflecting a slight daily decline of 1.36%. This stability suggests that while the news is significant, market participants may be adopting a cautious approach, awaiting further regulatory clarity.
Ongoing Legal Battle Between Ripple and the SEC
While the resumption of XRP trading on Coinbase is a positive development, Ripple’s legal battle with the SEC is far from over. The recent passage of the FIT21 bill poses additional challenges for Ripple. The bill does not recognize entities controlling more than 20% of a cryptocurrency’s supply as decentralized. Ripple currently holds 46.5% of the total XRP supply, making it a potential target for further regulatory scrutiny. This ongoing legal uncertainty continues to cast a shadow over XRP’s future.
Conclusion
The resumption of XRP trading on Coinbase for New York users marks a significant regulatory milestone and offers a glimmer of hope for Ripple amidst its ongoing legal challenges. While the market reaction has been muted, the move could signal a broader shift in regulatory attitudes towards XRP and other cryptocurrencies. As the legal battle between Ripple and the SEC continues, the crypto community will be closely watching for any further developments that could impact the market.
