Coinbase Resumes XRP Trading in New York

Coinbase’s chief legal officer announced that customers in New York could resume XRP trading on coinbase.

Paul Grewal, chief legal officer of Coinbase, declared on May 23 that, following a nine-month hiatus, clients in the State of New York could trade XRP on the cryptocurrency exchange. 

Grewal issued the following update via a concise social media post: “XRP trading is once again available on Coinbase in New York. We listened to your input and collaborated closely with the State to complete the task. Furthermore, we are once again operational; thus, it is now possible to announce our return.

After Ripple was sued by the United States Securities and Exchange Commission (SEC) in 2020, XRP remained a troubled asset, subject to examination by centralized exchanges and government regulators.

Coinbase, Bittrex, and Binance.US were among the centralized exchanges delisted XRP in response to the SEC’s accusation that Ripple Labs sold unregistered securities. 

The exchanges, as mentioned earlier, reversed their previous position. They reinstated the digital asset after the 2023 ruling by Judge Analisa Torres that secondary XRP sales did not qualify as securities sales.

Coinbase’s relisting of the token garnered significant attention during that period when XRP investors and speculators anxiously waited for the relisting of the asset by other major exchanges. 

Even with the court’s decision and the token’s relisting on platforms in the United States, XRP continued to encounter regulatory obstacles in Japan and New York, among other jurisdictions and locales. 

Ripple Labs was removed from the “Greenlist” of companies authorized to custody customer assets by the New York Department of Financial Services (NYDFS) in September 2023. As a result, Coinbase was compelled to suspend XRP trading for New York residents. 

To maintain the authority to function as asset custodians in New York, crypto firms and other entities must apply NYDFS and receive individual approval before proceeding.

The price of XRP appeared to respond favorably to the news, as evidenced by the daily candle exhibiting upward pressure and the price fluctuating from $0.51 to approximately $0.53 at the moment of this composition. 

Notwithstanding this, the price of XRP has encountered persistent downward pressure since its most recent peak of $0.74 was established on March 12, 2024.