The US SEC filed a lawsuit against Ripple Labs in January 2021 for selling unregistered securities worth $ 1.38 billion. Coinbase has since suspended XRP transactions due to regulatory issues. However, in the latest development, the exchange announced that it will launch XRP trading in NY. It is now possible for Coinbase users in NY to trade XRP on the platform again.
Coinbase has restarted XRP trading in New York!
cryptokoin.comAs you’ve been following from , crypto is making new gains in the regulatory space. This increases hope for projects whose legal struggle continues. When legal warfare is mentioned in the crypto world, Ripple usually comes to mind. Leading crypto exchange Coinbase announced that it is possible for New York users to trade XRP again. This news is a very important development for the cryptocurrency community. Because this move came after the stock market was suspended for a long time since January 2021 due to regulatory issues.
On January 19, 2021, Coinbase halted token trading due to the US SEC filing a lawsuit against Ripple Labs. The SEC alleged that Ripple sold $1.38 billion worth of unregistered securities through token sales. This led to widespread token suspensions and delistings in the US, including from Coinbase. The first suspension significantly affected its presence in the market. Users were not able to convert or exchange their XRP into fiat currency. However, he could still deposit, store and transfer the token. Coinbase took this step to reduce legal risks arising from the SEC’s lawsuit against Ripple. Coinbase’s Chief Legal Officer Paul Grewal shared the development on social media:
XRP trading on Coinbase is available again in NY. We heard you and worked in strong partnership with the State. And now it can be promised – we are back.
Impact of development on token price
Customers can now log into their Coinbase accounts to buy, sell, convert, send, receive or store tokens through the Coinbase website and iOS and Android apps. Following the news that Coinbase had restarted XRP trading, the price of the token remained relatively stable. At the time of writing, XRP was changing hands at $0.5296, down 1.36% on a daily basis.
Ripple’s legal battle with the SEC continues
Despite the positive news, the future fate of XRP remains uncertain. The recent passage of the FIT21 bill poses a serious threat to Ripple. Because the law does not define decentralization as a single entity controlling the Blockchain and related parties holding more than 20% of the cryptocurrency or voting power. Ripple currently holds 46.5% of the 100 billion token supply with 5,258,162,324 XRP on hand. In addition, the 41.3 billion XRP currently locked will be subject to escrow. Therefore, the story of the conflict between the company and US regulators may take an unexpected new turn.
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