Even though both Coinbase and Ripple are struggling with regulatory and legal issues in the United States, the cryptocurrency exchange has relaunched XRP trading in New York, in a move that many might take as Ripple’s (another) win against the US Securities and Exchange Commission (SEC).
Indeed, Coinbase has relisted XRP on its platform, thus making its trading available to the 20 million residents of New York “in a strong partnership with the State,” with the crypto trading platform’s chief legal officer Paul Grewal sharing the good news in an X post published on May 23.
Coinbase and Ripple’s SEC woes
As a reminder, Coinbase has been in a legal battle against the SEC since June 2023, when the regulator accused the crypto exchange of operating as an unregistered national securities exchange, broker, and clearing agency and failing to register the offer of its staking-as-a-service program.
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Earlier, in January 2021, the crypto platform had initially removed XRP across its US markets after the SEC accused blockchain company Ripple of illegally selling XRP and raising over $1.3 billion in what the agency said was an unregistered securities offering.
However, in July 2023, Judge Analisa Torres ruled that Ripple did not violate federal securities law by selling XRP on public exchanges, albeit finding that direct sales to institutional clients did, in fact, constitute investment contracts, warranting further court proceedings that are yet to conclude.
Meanwhile, the recent decision by Coinbase to bring back XRP support for New York residents could become a necessary trigger for the price of XRP, which is currently trading at $0.52, recording a 0.56% decline on the day, a 1.14% gain across the week, and a 3.66% drop in the last month, as per data on May 24.
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