Coinbase, the renowned cryptocurrency exchange platform, recently announced news that had the crypto community buzzing: the return of XRP support for New York State residents. This follows a mixed federal court ruling on the nature of XRP transactions. This article explores the details of this reinstatement and its implications for users and the market.
Coinbase relaunches XRP trading
On July 13, 2023, a federal court ruled that certain transactions on exchange platforms did not constitute sales of securities. This ruling paved the way for Coinbase to reinstate XRP in its offering for New York residents. Paul Grewal, Coinbase's Chief Legal Officer, announced the news on Twitter, saying, "It's time to relist."
Implications for New York users
New York residents can now buy, sell and trade XRP on Coinbase. This decision marks a significant turning point, as New York has always been a state with strict cryptocurrency regulations. Until recently, these regulations had prevented users in the state from accessing many tokens available elsewhere in the US.
XRP's impact on the market
Following the announcement, the price of XRP rose dramatically, increasing by over 80% and reaching its highest level since April 2022. This surge testifies to investor enthusiasm and renewed confidence in the token following the legal clarifications.
Challenges and opportunities for Coinbase
Strategic reintegration
Coinbase didn't just reintegrate XRP opportunistically. The platform has also taken steps to ensure that transactions comply with the new legal guidelines. XRP transfers on Coinbase must take place on the XRP network, avoiding the risk of loss of funds associated with sending on other networks.
Expanding offers
At the same time, Coinbase continues to expand its list of tokens available to New York residents. In 2019, the platform had already added tokens such as Dai (DAI), Stellar Lumens (XLM), and Chainlink (LINK), showing its willingness to make a wide range of cryptocurrencies accessible despite strict regulations.
