Why Coinbase Resumes Trading XRP in New York

The crypto exchange Coinbase is now allowing trading in XRP, Ripple’s cryptocurrency, in New York again. The US state has strict rules for the crypto sector, and the move is symbolic.

Ripple’s cryptocurrency, XRP , is stuck in stagnation in terms of price. While Bitcoin (BTC) and Ethereum (ETH) have seen more than 100 percent gains in their price curves over the last twelve months, XRP has only gained 13 percent in the same period. Ripple should therefore be pleased that XRP has now been approved for trading again in New York by the important US crypto exchange Coinbase. Paul Grewal, Coinbase’s chief legal officer, announced this via X. “We have listened to you,” Grewal writes to customers and the XRP community.

In the USA, the rules for the crypto industry vary considerably from state to state, with New York being known as the state with the strictest regulation. It is therefore positive for XRP and Ripple that Coinbase reached an agreement with New York authorities. Coinbase gradually stopped trading in XRP at the turn of the year 2020/1 , citing a lawsuit by the Securities and Exchange Commission (SEC) against Ripple as the reason. After Ripple won a partial victory in the case last summer , Coinbase allowed trading in XRP again in all other US states except New York.

However, Ripple’s legal dispute with the SEC over XRP is not over yet. The trial is currently in a second round , which is to decide on the legal status of XRP in connection with institutional investors. A verdict is expected in the coming months, and Ripple faces high fines.

Conclusion: Coinbase shows solidarity with Ripple and XRP

Coinbase is also being dragged to court by the SEC and is fighting for regulatory clarity. In this context, Coinbase’s use of XRP in New York is a sign of willingness to cooperate with authorities. Meanwhile, Ripple is working on its own stablecoin to diversify its business model.

The outlook for XRP remains complicated. The altcoin, with a market capitalization of almost 30 billion US dollars, is still one of the ten most important cryptocurrencies. But the original concept for XRP, to be used as a bridge currency for international money transfers, never really worked, which is also reflected in the price curve.

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