Coinbase resumes XRP trading in NY after nine-month hiatus

In a brief social media post, Grewal stated, “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.”

The legal battle between the U.S. Securities and Exchange Commission (SEC) and Ripple Labs has quickly entered yet a new phase after a federal judge allowed the agency to challenge a ruling that the XRP token isn’t a security when sold to the general public.

In September 2023, the New York Department of Financial Services (NYDFS) removed Ripple Labs from its “Greenlist” of approved custodians, which led Coinbase to suspend XRP trading for New York residents. Crypto firms seeking to act as custodians in New York must be approved by the NYDFS to retain this right.

The relisting of XRP on Coinbase in New York was met with positive market reaction, with the price of XRP rising from $0.51 to nearly $0.53 following the announcement. Despite this uptick, XRP has faced downward pressure since its recent high of $0.74 on March 12, 2024.

Although Ripple contested the charges, the legal battle with the SEC has taken years as the company fights the charges in court. Since then, crypto exchanges have been careful about not associating with illegal assets as those who kept the token listed on their platforms were at risk of being sued and fined if the SEC wins its case, and the court deems XRP sales as unregistered securities.

The case is pivotal in determining the SEC’s jurisdiction over cryptocurrencies, with the agency arguing for regulatory oversight similar to stocks and bonds. The question of whether Ripple’s XRP sales should have been registered with the SEC has been a central issue in the case since the agency’s lawsuit against Ripple in 2020.