Rival exchanges join Coinbase in reopening XRP trading after court ruling

Quick Take

  • Coinbase, Crypto.com and Kraken Pro are reopening trading of XRP. Gemini is also considering relisting the token.
  • The news follows a mixed court ruling that signaled a partial victory for Ripple in its years-long legal battle with the securities regulator.

A growing number of cryptocurrency exchanges are reopening trading in XRP, after a mixed ruling from a United States federal judge on the ongoing legal battle between the securities regulator and Ripple.

Crypto outfits including Crypto.com and Kraken Pro said Friday morning Asia time that XRP is once again listed on their trading platforms. 

Many exchanges operating in the U.S. halted XRP trading when the Securities and Exchange Commission filed a lawsuit against Ripple Labs at the end of 2020. Their about-turn comes with many observers celebrating yesterday's mixed ruling as a key victory for the sector. 

“Buy XRP at true cost with USD, EUR, GBP, and 20+ fiat currencies,” Crypto.com tweeted, while Kraken Pro said on Twitter that XRP is “back in full-trading mode” on its platform. 

Earlier today, the Gemini crypto exchange said it is considering relisting XRP. “Given today’s ruling that the sale of XRP on exchanges is not a security, Gemini is exploring the listing of XRP for both spot and derivatives trading,” Gemini said in a tweet.

Coinbase, the largest crypto exchange in the U.S., said yesterday that it will re-enable trading of XRP. “We've read Judge Torres' thoughtful decision,” Coinbase Chief Legal Officer Paul Grewal tweeted. “We've carefully reviewed our analysis. It's time to relist.”

Some uncertainty over the status of XRP persists, however. The mixed ruling from the Southern District Court of New York in the lawsuit between the SEC and Ripple is by no means the end of that dispute. The case could now go to trial or be appealed

Right time to resume XRP trading?

While Judge Analisa Torres ruled yesterday that some of its sales of XRP did not fully meet the definition of a securities offering, she also stated that Ripple’s sales to institutional buyers were unlawful securities sales.

“It seems that the wording was clear enough for [many exchanges], or at least that their legal departments feel like they can withstand any legal blowback based on the current ruling,” said Justin d'Anethan, head of APAC business development at crypto market maker Keyrock.

“Admittedly, in the wake of many exchanges’ woes, the listing and trading of a token that was characterized as 'not a security' seem reasonable,” d'Anethan added.

Youwei Yang, chief economist of Bit Mining, said exchanges often open trading for popular coins “sooner rather than later.”

“Exchanges profit from the volatility and hype surrounding coins, as greed and fear create more opportunities for transaction volume and fees,” Yang added. “Exchanges and participants may be overly optimistic, but the potential return from reopening outweighs the risk of lawsuits and fines due to the perceived success of Ripple.”

Wayne Huang, co-founder and CEO of Taipei-headquartered XREX exchange, said the ruling gave many exchanges, especially those serving U.S. investors, a signal that it might be compliant to list or relist XRP. “The courts uphold defense mechanisms for the industry to fight against unfair law enforcement,” he added.

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