Coinbase Reopens XRP Trading for New York Users

Coinbase has resumed trading for XRP in New York, marking a significant milestone after a nine-month suspension. Paul Grewal, Coinbase’s Chief Legal Officer, announced this on May 23, 2024, highlighting the company’s efforts to comply with New York’s stringent regulations.

XRP, created by Ripple Labs, faced major regulatory hurdles when the SEC accused Ripple of selling unregistered securities in 2020. This led to its delisting from major exchanges, including Coinbase. However, a 2023 court ruling clarified that secondary sales of XRP did not constitute securities sales, prompting many exchanges to relist it. Despite this, XRP continued to struggle with regulatory issues, particularly in New York.

New York’s BitLicense, known for being tough to obtain, added to these challenges. In September 2023, the NYDFS removed Ripple from its “Greenlist,” causing Coinbase to halt XRP trading for New York residents. Grewal’s recent announcement reflects Coinbase’s commitment to addressing these regulatory barriers and reconnecting with New York customers.

XRP, the eighth-largest digital asset with a market cap of $29.5 billion, saw a slight price increase following the news, rising from $0.51 to nearly $0.53. This move by Coinbase is a positive step for the cryptocurrency industry, demonstrating progress in resolving regulatory issues and enhancing market stability.