On May 23, Coinbase’s Chief Legal Officer, Paul Grewal, announced that XRP trading is once again available for customers in New York after a nine-month hiatus. Grewal shared this update on an X 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.”
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
XRP has faced significant challenges since the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Ripple Labs in 2020, accusing the company of selling unregistered securities. This led to many centralised exchanges, including Coinbase, Bittrex, and Binance.US, delisting XRP.
However, the landscape shifted in 2023 when Judge Analisa Torres ruled that secondary sales of XRP did not constitute securities sales. Following this ruling, many exchanges, including Coinbase, relisted XRP, much to the anticipation of investors and speculators.
Despite the court’s decision and subsequent relisting on various U.S. platforms, XRP continued to face regulatory issues in certain areas, including Japan and New York. In September 2023, the New York Department of Financial Services (NYDFS) removed Ripple Labs from its “Greenlist,” which included companies approved to custody customer assets. This forced Coinbase to suspend XRP trading for New York residents.
Crypto firms looking to act as custodians for customer funds in New York must apply for and receive individual approval from NYDFS. Coinbase’s recent announcement indicates successful collaboration with the state to restore XRP trading rights.
Following the announcement, XRP’s price saw a positive reaction, rising from $0.51 to nearly $0.53. Nevertheless, XRP has been experiencing a downward trend since reaching its most recent high of $0.74 on March 12, 2024.