Coinbase has announced the resumption of XRP trading on its platform. The decision comes in the wake of a federal judge’s ruling that the sale of XRP, except when sold to institutional investors, does not qualify as a security.
Although XRP trading is not immediately available, Coinbase stated on its CoinbaseAssets Twitter account that trading is expected to commence later in the day, subject to liquidity conditions. The exchange plans to launch XRP trading pairs gradually, including XRP-USD, XRP-USDT, and XRP-EUR. However, support for XRP may be restricted in certain jurisdictions.
Coinbase Chief Legal Officer Paul Grewal expressed the company’s confidence in relisting XRP, emphasizing the careful analysis they conducted. Judge Analisa Torres’ ruling stated that XRP is not deemed a security when offered to the public or distributed to Ripple Labs employees through programmatic sales. However, the sale of $728 million worth of XRP contracts to institutional investors was considered unregistered securities sales.
Update: Trading is now expected to begin in ~45 minutes, on or after 1:45 PT today, if liquidity conditions are met.
Follow along the launch of trading at @CoinbaseExch https://t.co/wXubAljkS3
— Coinbase Assets 🛡️📞 (@CoinbaseAssets) July 13, 2023
The Ripple case has drawn immense attention as observers look to gauge the Securities and Exchange Commission’s (SEC) lawsuit against Coinbase. Both cases center on whether the tokens in question can be classified as securities. Legal commentators believe that the court’s ruling on XRP could significantly impact the SEC’s case against Coinbase.
The decision has already had a positive impact on both Coinbase and XRP. Coinbase’s stock, trading on the Nasdaq under the ticker COIN, has reached a year-high of $104.30, up 210% since January. Meanwhile, XRP’s price surged by 71% following the judge’s ruling.
While this ruling does not establish a binding precedent, it holds relevance for the ongoing legal proceedings involving Coinbase. As the crypto industry continues to evolve, these developments are closely watched by market participants and legal experts alike.
