Coinbase, the leading cryptocurrency exchange in the United States, has announced that it is once again allowing trading of XRP in the state of New York. This comes after the exchange suspended XRP trading across the country following a lawsuit by the U.S. Securities and Exchange Commission (SEC) against Ripple, the company behind XRP.
The SEC alleged that Ripple sold XRP as an unregistered security, prompting Coinbase to suspend trading of the cryptocurrency. However, last July, US District Judge Analisa Torres ruled that Ripple’s automated sales of XRP did not qualify as securities sales. As a result, Coinbase relisted XRP, but users in New York were still barred from trading the asset.
Coinbase’s Chief Legal Officer, Paul Grewal, stated that the exchange worked closely with the state of New York to reinstate XRP trading. Currently, XRP is trading at $0.517, experiencing a decline of over 2.5% in the past 24 hours. Despite Ripple’s partial victory last summer, the legal battle with the SEC is ongoing. Judge Torres did agree with the SEC’s claim that Ripple’s direct sale of XRP to institutional buyers constituted a securities offering.
In March, the SEC requested that the court order Ripple to pay a total of $1.95 billion, including disgorgement, prejudgment interest, and a civil penalty. Last month, Ripple filed an opposition to the SEC’s motion, arguing against the requested injunction, disgorgement, and pre-judgment interest. The company also suggested that the civil penalty should be limited to $10 million.
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