In a major turnaround, major cryptocurrency exchanges Coinbase, Kraken, Bitstamp and Gemini announced their decision to re-offer XRP following a significant legal victory for Ripple against the Securities and Exchange Commission (SEC).
This momentous decision is a result of the exchanges re-evaluating their previous removal of XRP, showing a renewed confidence in the token’s regulatory status. This was triggered by the recent historic court ruling by Judge Analisa Torres.
Coinbase, Kraken and Bitstamp Restore XRP Trading
Coinbase, a leading cryptocurrency exchange, wasted no time in announcing the resumption of XRP trading following the court ruling. Brian Armstrong, Coinbase’s CEO, expressed the exchange’s decision in a tweetciting:
“Coinbase will allow trading of XRP (XRP) on the XRP network again. Do not send this item through other networks or you may lose your money. Transfers for this asset will continue to be available on @Coinbase & @CoinbaseExch.”
The recovery of the digital asset on Coinbase’s platform marks a significant shift in their position following the delisting of the token in January 2021. Kraken, another prominent exchange, also confirmed its plans to restore trading in the cryptocurrency, as Kraken legal officer Marco Santori said. tweeted stated:
“1/ This morning the Federal Court for the Southern District of New York ruled that XRP is not a security. As such, Kraken re-enabled XRP trading for US users a few minutes ago.
Bitstamp, an early adopter of XRP, joined the bandwagon, emphasizing its role as a leading liquidity location for the asset globally as it yield of the token on the exchange for US users.
Token holding majority of gains from Thursday | Source: XRPUSD on TradingView.com
Ripple’s legal battle and market impact
The court’s ruling stems from the SEC’s lawsuit against Ripple, which accused the company of conducting an unregistered securities offering by selling and distributing XRP.
Ripple chose to fight the lawsuit and invested significant resources in the legal process. The outcome of this case is of great significance to the cryptocurrency industry as it defines the regulatory oversight that digital asset companies face.
While Judge Torres’ recent summary judgment concluded that while Ripple’s initial sale of XRP to institutional investors could be classified as a securities offering, subsequent trading of the tokens on crypto exchanges did not fall under the same classification.
This ruling provides some degree of clarity regarding the legal status of the token and sets a precedent for similar cases involving other cryptocurrencies.
The market reacted enthusiastically to the court ruling as XRP surged in value, rising more than 75% from its price early Thursday. Coinbase stock prices also witnessed a significant increase of over 24% following the ruling.
Featured image from iStock, chart from TradingView.com