US-based cryptocurrency exchange Coinbase has made a significant move by reopening XRP trading for New York users despite the ongoing legal dispute between the decentralized platform Ripple and the US Securities and Exchange Commission (SEC).
This decision marks a bold step for Coinbase, which had previously suspended XRP trading following the SEC’s lawsuit against Ripple. The development comes as the legal battle approaches a crucial stage, with the court expected to deliver its judgment soon.
XRP Makes A Comeback On Coinbase
In response to the SEC’s lawsuit against Ripple Labs, Coinbase suspended XRP trading pairs on its platform in January 2021. The exchange gradually limited trading to “limit only” mode before fully suspending it on January 19, 2021.
However, Coinbase Chief Legal Officer Paul Grewal announced on Thursday the reopening of XRP trading for New York users through a social media statement. Grewal acknowledged the community’s feedback and emphasized the collaborative efforts made with the state to reinstate XRP trading.
Ripple’s legal battle with the SEC has been tedious, but the case is now nearing its conclusion. Both parties have filed their respective briefs, and Judge Analisa Torres is expected to issue her final ruling soon.
Before the ruling, the court will rule on Ripple’s motion to seal, determining whether the company’s financial information will be made public.
Following the ruling, Ripple will have fourteen days to produce the relevant documents in a public or redacted version. The SEC has proposed a significant fine of nearly $2 billion against the decentralized payment platform, while Ripple has argued for a limited fine of $10 million.
Ripple Lawsuit Hangs In The Balance
Recent developments in the regulatory landscape, including the passage of the Financial Innovation and Technology for the 21st Century Act (FIT21) by the US House of Representatives, can potentially impact Ripple’s lawsuit and the overall crypto industry.
FIT21 aims to establish a regulatory framework for digital assets, providing much-needed clarity and support for innovation. However, the SEC, led by Chair Gary Gensler, has expressed concerns about consumer protection measures in the bill and emphasizes the applicability of existing regulations to the crypto space.
President Biden has also raised concerns and threatened to veto the bill in its current form. The outcome of these regulatory discussions could significantly shape the industry’s future.
Ultimately, Coinbase’s decision to resume XRP trading in New York demonstrates a notable shift in its stance toward the cryptocurrency amidst Ripple’s legal battle with the SEC.
As the trial nears its conclusion, the crypto industry is eagerly awaiting Judge Analisa Torres’ ruling, which will determine the outcome and potential financial impact on Ripple, as the final decision and its ramifications will have far-reaching consequences, not only for Ripple but for the broader cryptocurrency market in the United States.
Currently trading at $0.534, XRP has seen no change in price over the past 24 hours. Yet, over the past fourteen days, the cryptocurrency has secured gains of 4.1%.
Featured image from Shutterstock, chart from TradingView.com