According to a recent announcement, New York residents can now commence trading XRP on the Coinbase exchange. Coinbase Chief Legal Officer Paul Grewal stated that the recent development is in collaboration with the State authorities and a response to users’ complaints.
XRP Trades Again in New York
Based on the announcement, customers in New York can once again buy and sell XRP on Coinbase’s website and mobile applications. XRP’s reintroduction on Coinbase has been met with great excitement in the online crypto community.
XRP trading on @coinbase is available again in NY. We heard you and put in the work in strong partnership with the State. And now the word can be put out— we are back up.
— paulgrewal.eth (@iampaulgrewal) May 23, 2024
This news comes after four years when Coinbase withdrew its support owing to a legal dispute concerning the token’s classification as a security. As a backdrop, Coinbase first issued support for XRP trade in the United States in 2019. However, Coinbase withdrew its support two years later, when the US Securities and Exchange Commission (SEC) accused Ripple Labs Inc. of trading XRP as a security token.
Eventually, Coinbase restored support for the cryptocurrency later that year, although it maintained limited access for New York residents. It is worth mentioning that New York has strict rules guiding crypto adoption in the State. For instance, the BitLicense, a virtual license issued by the New York State Department of Financial Services (NYDFS) is considered one of the most difficult and expensive crypto operating licenses to secure in the US.
Implication for XRP and Coinbase
XRP’s relaunch on Coinbase holds great implications for both Coinbase and customers in New York. It is expected that XRP will get more liquidity as a result of increased accumulation, leading to a potential increase in its price.
On the part of Coinbase, it could see greater adoption from New York residents who were once limited based on the XRP restriction. Surprisingly, Coinbase was recently hit with a class-action lawsuit over allegations that it engaged in illegal securities sales and deceived investors. With the recent development, Coinbase users are eager to see what’s next for the exchange.
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