In a significant development for the cryptocurrency industry, leading US-based exchanges Coinbase and Kraken have announced their plans to resume XRP trading after a hiatus of approximately two years. The decision comes in the wake of a recent court ruling that determined XRP is not a security under the jurisdiction of the United States Securities and Exchange Commission (SEC). iTrustCapital, a crypto firm, has already relisted the token, while other exchanges like Gemini are considering following suit.
Gemini, through a Twitter announcement, expressed its intention to explore listing XRP for spot and derivatives trading. This move marks a turning point for exchanges offering XRP trading, as enforcement actions by the SEC against platforms like Binance and Coinbase had raised concerns. The legal precedent set by the Ripple case now provides some relief and regulatory clarity to such exchanges.
Coinbase, in another tweet, stated that they would begin XRP trading once sufficient liquidity conditions are met. The exchange plans to gradually launch XRP trading pairs such as XRP-USD, XRP-USDT, and XRP-EUR. However, support for XRP may be limited in certain jurisdictions.
Industry experts have emphasized the significance of this court ruling for the entire cryptocurrency sector. Sheila Warren, CEO of the Crypto Council for Innovation, described it as a game-changer that challenges the SEC’s authority over underlying assets and asserts the existence of regulatory clarity. Exchanges that had previously delisted XRP, including OKX, have praised the decision without confirming their own plans to reintroduce the token.
The legal battle between Ripple Labs, the company behind XRP, and the SEC began when the commission filed charges against Ripple, CEO Brad Garlinghouse, and co-founder Chris Larsen in December 2020. This led to many exchanges, including Gemini and Kraken, delisting XRP to comply with regulations concerning securities offerings to US users. Uphold, a crypto payments processor and exchange operator, declared its support for the XRP community but refrained from taking action until the court case concluded.
The reinstatement of XRP trading marks an important milestone that could have far-reaching implications for the cryptocurrency industry’s future regulatory landscape. The decision by Coinbase, Kraken, iTrustCapital, and potential adoption by other exchanges signals renewed confidence in the legal status of XRP, while providing investors with increased opportunities for trading and liquidity.