XRP Relisting on Major Exchanges
Following a federal judge’s ruling that XRP is not a security, major crypto exchanges including Coinbase and Kraken have relisted the XRP token. This move has resulted in a surge of almost 25% in XRP prices today, positioning the token as the fifth-largest cryptocurrency by market capitalization.
Key Takeaways
- Coinbase, Kraken, and other major exchanges have relisted XRP based on the court ruling that XRP itself is not considered an investment contract.
- Coinbase’s stock prices reacted positively to the news, anticipating a favorable outcome in its own legal battle with the SEC.
- The ruling on XRP should not be seen as a conclusive verdict on crypto asset regulations, as the SEC retains the option to appeal and lawmakers are formulating legislation in the crypto space.
Exchanges React to Ruling
U.S. District Judge Analisa Torres’ decision that XRP is not a security on secondary exchanges allowed Ripple to claim a partial victory in the ongoing case initiated in December 2020.
Exchange Relistings
Coinbase resumed XRP trading once liquidity thresholds were met, while Kraken also reintroduced XRP for U.S. traders, offering trading against various fiat pairs along with ETH, BTC, and USDT.
Gemini is exploring the possibility of listing XRP for spot and derivatives trading, and Bitstamp has relisted XRP for its U.S. clients following the court ruling.
Market Reaction
The market’s positive response to the Ripple case has bolstered confidence in Coinbase amid its legal tussle with the SEC. Notably, Coinbase and Binance faced SEC lawsuits for alleged unlicensed securities trading, with Binance maintaining XRP on its non-U.S. platform.
Coinbase’s stock surged by approximately 24% in recent days, reflecting growing optimism in response to traditional financial giants like BlackRock filing for spot bitcoin ETFs.
Remaining Questions
While several exchanges have relisted XRP, crypto legal experts caution that the non-security classification of XRP may not be definitive. The legal standing of crypto assets remains ambiguous, with the SEC retaining the right to challenge Thursday’s verdict.
“This ruling only perpetuates uncertainty in the cryptocurrency space, a domain where legislative intervention is necessary,” stated Brown Rudnick Partner Preston Byrne.
Furthermore, the Ripple court order specifies that the court did not rule on whether secondary XRP sales on exchanges constitute investment contract offerings, emphasizing that this aspect was not under the court’s purview.