Ripple’s July 13 landmark legal win over the US Securities and Exchange Commission (SEC) has inspired the American crypto exchange Coinbase to consider restarting XRP trading. In the court ruling issued by Judge Analisa Torres, Ripple’s offering was considered not a security.
The judge ruling in favor of Ripple ignited a bullish momentum on stock prices listed on the Coinbase trading platform. A few minutes after the ruling, it was evident that most of the stock prices on Coinbase jumped by 20%.
Beyond this, the prices of Ripple’s native token, XRP, reacted to the news by increasing by double digits. At press time 09:43 UTC, XRP is exchanging hands at $0.7708, a 63.16% surge in the last 24 hours.
Coinbase Relists XRP
Interestingly the modest increase in XRP price movement has sparked a new wave for firms seeking to relist the crypto asset on their trading platforms. In a Twitter statement, the Coinbase team revealed plans to restart the trading of XRP. Firstly, the crypto exchange will prioritize meeting the liquidity requirements to allow the user to start trading XRP.
The tweet revealed that the crypto exchange will gather sufficient assets for XRP trading. However, the Coinbase team will launch XRP-USD, XRP-EUR, and XRP-USDT trading pairs in phases.
Due to regulatory pressure, the crypto exchange noted that Coinbase might fail supporting the restarting of XRP trading in some jurisdictions. In the meantime, the Coinbase team is yet to start XRP tradings.
Regulatory Pressure Leads to Delisting of Crypto Assets
In November, the Coinbase team revealed plans to cease supporting the listing of XRP from December 05, 2022. The delisting of XRP on the Coinbase trading platform stemmed from the gradual decline in usage of the said crypto assets.
The Coinbase team also confirmed to delist Bitcoin Cash (BCH), Ethereum Classic (ETC), and Stellar (XLM) from the trading platform. Even though the Ripple vs. SEC case will undergo other trials, Judge Torres failed to provide a further ruling on the secondary sale of XRP.
In a court judgment summary, Judge Torres argued that XRP’s offering to programmatic sale was not a security. The judge noted that XRP sales worth $728 million issued to institutional clients involved unregistered securities. She added that most institution investors invested in XRP expecting to generate measurable income from Ripple’s effort.
Furthermore, this was not the first lawsuit filed by SEC against Ripple. In 2020 the SEC sued Ripple for providing unregistered securities XRP. Since then, the crypto community has had sleepless nights concerning the SEC regulatory action on Ripple.
SEC Takes Rgulatory Measures Against Crypto Firms
In June, the SEC charged Coinbase for violating customer protection and securities regulations by offering unregistered brokerage services. Reacting to the SEC lawsuit the Coinbase team slammed the market regulators for adopting the enforcement approach.
In its lawsuit, the SEC announced around nineteen crypto assets as securities. The announcement has compelled trading platforms such as Bakkt, Revolut, and eToro to stop supporting significant crypto assets grouped by the SEC as securities.
Irrespective of the SEC charges, the court ruling has inspired crypto exchanges, traders, and entrepreneurs to reconsider investing in XRP.
In a Twitter report issued on Thursday, July 13, the chief legal officer at Coinbase, Paul Grewal, stated that the court ruling make it comfortable for the crypto exchange to support XRP trading. The executive confirmed that the crypto exchange has agreed to relist XRP on its trading platform.
In a separate tweet, lawyer James Murphy, commonly known as MetaLawMan, was pleased to announce that the court ruling on XRP not being an investment contract will interfere with the SEC case against crypto firms, including Coinbase and Binance. He added that the court ruling failed to be a “binding precedent.”
In his report the lawyer urged the legal team dealing with the Coinbase case to replicate Ripple’s legal steps and processes.
Elsewhere, the judge’s decision on the Ripple case challenged the Gemini team to reconsider relisting XRP. In a tweet, the Gemini team pledged to explore ways to relist XRP on its spot and derivative trading platforms.
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