Four of the world’s largest cryptocurrency exchanges, Coinbase, Kraken, Bitstamp, and Gemini, have announced or considered relisting XRP after previously delisting the token in the United States in late 2020 and 2021.
Announcements by the Exchanges
Coinbase, Kraken, and Bitstamp have confirmed that they will reinstate XRP on their platforms, while Gemini is reconsidering a relisting.
Bitstamp CEO Bobby Zagotta stated, “Following today’s court ruling, we have resumed trading of XRP in the United States effective immediately. Bitstamp was one of the earliest exchanges to list XRP, and we are a leading liquidity venue for the asset globally.”
Landmark Court Ruling
The exchanges’ decision to reconsider XRP follows a landmark court ruling by Judge Analisa Torres in an ongoing lawsuit between the Securities and Exchange Commission (SEC) and Ripple, the company behind XRP.
In the lawsuit filed in December 2020, the SEC claimed that XRP was a security and that Ripple violated federal law by selling an unregistered asset through various means.
Coinbase and other exchanges delisted XRP following the SEC’s lawsuit, while Ripple chose to fight the legal battle, incurring substantial expenses.
Summary Judgment and Implications
Judge Torres delivered a summary judgment, ruling that while Ripple’s initial sale of XRP to institutional investors constituted a securities offering, the subsequent trading of XRP on secondary markets like crypto exchanges was not a violation of securities laws.
This decision has significant implications for the cryptocurrency industry as it clarifies the regulatory oversight of digital assets. The ruling distinguishes between the sale of securities to institutional investors and the buying and selling of XRP by retail investors on crypto exchanges.
Following the judge’s decision, the cryptocurrency market experienced a surge in prices. XRP saw an increase of over 75% compared to the beginning of the day, and Coinbase’s share prices rose by more than 24%.
The announcement by major crypto exchanges to relist or consider relisting XRP comes after a landmark court ruling that distinguished between the initial sale of XRP to institutional investors as a securities offering and the subsequent trading of XRP on secondary markets. This ruling has broader implications for the regulatory oversight of digital assets and has led to a positive market reaction with increased prices for XRP and Coinbase shares.