Key Takeaways
- Ripple emerges victorious. US Federal court judge rules that the XRP token is not a security.
- Several crypto exchanges, including Coinbase and Kraken, rush to re-list XRP.
- The price of Ripple’s token rallied extensively after the win
YEREVAN (CoinChapter.com) — Following the US federal court decision, which declared that the sale of XRP does not qualify as an investment contract, Coinbase resumed the sale of Ripple’s token on its platform.
The cryptocurrency exchange suspended token trading in January 2021 in light of the Securities and Exchange Commission’s (SEC) lawsuit against Ripple Labs the previous month.
Coinbase (COIN) announced it “will re-enable trading for XRP (XRP) on the XRP network,” provided there is sufficient liquidity for the asset on its platform.
Paul Grewal, Chief Legal Officer at Coinbase, also announced their listing.
“We’ve read Judge Torres’ thoughtful decision. We’ve carefully reviewed our analysis. It’s time to relist… Ripple’s Programmatic Sales of XRP [on digital asset exchanges] did not constitute the offer and sale of investment contracts.”
he wrote.
Hours later, the company announced trades could buy the token on its exchange. Subsequently, CRP-USD, XRP-USDT, and XRP-EUR pairs went live.
For Ripple Labs, the mood was nothing but celebratory. Stuart Alderoty, the company’s Chief Legal Officer, called the development “a huge win.” Meanwhile, Brad Garlinghouse, the CEO at Ripple Labs, who was also a defendant in the case, also hailed the news.
“We said in Dec 2020 that we were on the right side of the law, and will be on the right side of history. Thankful to everyone who helped us get to today’s decision – one that is for all crypto innovation in the US. More to come,”
he announced.
Following the verdict, the price of XRP jumped by around 90%. Before the verdict, the token hovered around $0.474.
However, the favorable news sent the market into a buying frenzy, pushing its price to $0.877, according to CoinMarketCap charts.
Crypto exchanges rush to relist XRP
Coinbase was not the only crypto exchange to announce relisting the token. Several others that had taken the axe to the token owing to the SEC’s lawsuit announced the same.
Gemini, a peer exchange, also expressed interest in listing Ripple’s token following the court’s ruling.
“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,”
it said in a Tweet.
Marco Santori, the Chief Legal Officer at crypto exchange Kraken, also announced that the XRP trading is live on its platform for US users.
“Kraken is excited to announce that United States residents can deposit and trade XRP,” t
he firm announced in a blog post.
In other news, the stock price of Coinbase (NASDAQ: COIN) also rallied nearly 30% following Ripple’s success in the court. The firm, which operates a crypto exchange, has recently come under the SEC’s scanner.
Last month, the regulatory body filed lawsuits against Coinbase and Binance (BNB). Now, traders hope the company can also pull off a Ripple-style win against the SEC. As a result, COIN is seeing its biggest rally since its debut.
