Crypto Giant Coinbase Reverses Course, Relists XRP After Landmark Ruling
The cryptocurrency industry has been following a significant legal victory for Ripple and XRP holders. The United States Securities and Exchange Commission (SEC) had accused Ripple of selling the token as an unregistered security in an ongoing lawsuit.
However, on Thursday, federal judge Analisa Torres ruled in favor of Ripple, stating that the sale of XRP on exchanges does not classify as a security.
XRP Ruling Opens Floodgates
Following the recent legal victory for Ripple, which clarified the legal status of the cryptocurrency, several major cryptocurrency exchanges have announced their plans to relist the token. Among these exchanges are Coinbase and Gemini, two of the largest regulated cryptocurrency exchanges in the world.
Coinbase has announced that it will re-enable trading for XRP on the XRP network, cautioning users not to send the asset to other networks to avoid losing funds. Trading for XRP on Coinbase is expected to begin later today, subject to liquidity conditions being met.
Once a sufficient supply of the asset is established, trading on XRP-USD, XRP-USDT, and XRP-EUR trading pairs will launch in phases.
Similarly, Gemini has also decided to list XRP for spot and derivatives trading. The announcement is significant for Ripple and XRP, as Gemini is known for its strict regulatory compliance. Its decision to list XRP could encourage other exchanges to follow suit, potentially leading to a surge in demand for the token.
Meanwhile, iTrustCapital, a leading self-directed IRA platform for alternative investments based in the U.S., has also announced its decision to relist the token on its platform. The company cited increased clarity and confidence in the legal status of the token as the primary reason for its decision, expressing excitement about the potential for progress and mainstream adoption in the cryptocurrency industry.
The recent legal victory for Ripple has prompted a renewed interest in the token as more exchanges and investors gain confidence in its legal status. The move also reflects a broader trend among cryptocurrency exchanges to expand their offerings beyond traditional assets and to list a wider variety of tokens, including those that were once considered controversial or risky.
Ripple On The Right Side Of History
Brad Garlinghouse, the CEO of Ripple, has expressed his gratitude towards everyone who supported the company during the recent legal battle with the SEC. He has stated that the recent ruling in favor of Ripple and XRP is a victory for the company and all crypto innovations in the US. Garlinghouse further stated:
We said in Dec 2020 that we were on the right side of the law, and will be on the right side of history. Thankful to everyone who helped us get to today’s decision – one that is for all crypto innovation in the US. More to come.
The most important part of the ruling, according to Garlinghouse, is the finding that XRP is not in and of itself a “contract, transaction, or scheme” that embodies the Howey requirements of an investment contract. This means that XRP is not a security and will not be subject to the same regulatory requirements as traditional securities.
Garlinghouse has emphasized that this finding is now a matter of law and is not up for trial. This provides increased clarity and certainty for investors and market participants, as they now have a better understanding of the regulatory status of XRP.
On the other hand, Ripple’s CLO has also emphasized the need for a rational conversation about crypto regulation in the country. He believes that the recent ruling provides a starting point for this conversation, as it establishes a legal precedent for the classification and regulation of digital assets.
Featured image from Unsplash, chart from TradingView.com
