Major cryptocurrency exchanges like Coinbase and Kraken have reinstated XRP trading after a federal judge ruled that XRP is not a security. The token's price surged nearly 25%, propelling it to become the fifth-largest cryptocurrency by market capitalization.
Key Takeaways
- Coinbase, Kraken, and other leading exchanges relisted XRP following the court's classification of XRP as a non-security.
- Coinbase's stock price rose significantly, reflecting optimism about the ruling's potential impact on its own SEC lawsuit.
- The ruling isn't definitive—the SEC may appeal, and Congressional crypto legislation remains pending.
Exchanges Relist XRP After Court Decision
U.S. District Judge Analisa Torres determined that XRP isn't a security when traded on secondary exchanges, marking a partial victory for Ripple in a case dating back to December 2020.
Exchange Reactions:
- Coinbase: Resumed XRP trading after meeting liquidity requirements.
- Kraken: Relisted XRP for U.S. traders with multiple trading pairs (USD, ETH, BTC, USDT).
- Gemini: Exploring spot and derivatives trading options for XRP.
- Bitstamp: Reinstated XRP for U.S. customers, continuing its long-standing partnership with Ripple.
The ruling has positively influenced market sentiment toward Coinbase's ongoing SEC case. Notably, Binance maintained XRP trading on its international platform but delisted it from Binance.US.
👉 Discover how major exchanges are adapting to regulatory changes
Market Impact and Lingering Questions
While exchanges view relisting XRP as low-risk post-ruling, legal experts caution that crypto asset classification remains fluid:
- Potential SEC Appeal: The regulator could challenge Thursday's decision.
- Congressional Action: Legislation may ultimately redefine crypto regulations.
- Secondary Sales Clarification: The court explicitly avoided ruling on whether exchange trades constitute investment contracts.
Coinbase's stock surged approximately 24% over two days, buoyed by both the Ripple decision and growing institutional interest in crypto, including BlackRock's spot Bitcoin ETF filing.
FAQ: XRP Relisting and Regulatory Implications
Why did exchanges delist XRP initially?
Exchanges suspended XRP trading in 2020 when the SEC alleged Ripple conducted unregistered securities offerings.
Is XRP permanently classified as a non-security?
No—the SEC may appeal, and future rulings or legislation could alter its status.
How does this affect other SEC crypto lawsuits?
The ruling sets a partial precedent but doesn't guarantee similar outcomes for Coinbase or Binance cases.
👉 Learn more about evolving crypto regulations
Will more exchanges relist XRP?
Likely—Gemini and others are already evaluating listings, though some may wait for final regulatory clarity.
What's next for Ripple?
The case continues regarding institutional sales of XRP, with potential appeals prolonging resolution.
How are traders reacting?
XRP's price surge indicates strong market confidence, though volatility may persist during ongoing legal processes.