In a significant development for the cryptocurrency market, major exchanges Coinbase and Kraken have announced plans to relist XRP following a pivotal court ruling that determined XRP is not a security. This decision marks a turning point for Ripple's native token after nearly three years of legal uncertainty.
The Court Ruling That Changed Everything
The US District Judge Analisa Torres delivered a landmark verdict today, stating that XRP does not qualify as a security when traded on secondary exchanges. The ruling clarified:
"XRP, as a digital token, is not in and of itself a 'contract, transaction[,] or scheme'" that embodies the Howey requirements of an investment contract."
This distinction between institutional sales and secondary market trading proved crucial for XRP's relisting prospects.
Exchange Responses and Implementation Plans
Coinbase's Relisting Process
- Trading pairs: XRP-USD, XRP-USDT, and XRP-EUR
- Phased launch: Begins once liquidity conditions are met
- Regional restrictions: Some jurisdictions may have limited support
Paul Grewal, Coinbase's Chief Legal Officer, confirmed the decision via tweet:
"We've read Judge Torres' thoughtful decision. We've carefully reviewed our analysis. It's time to relist."
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Kraken's US Market Activation
- Immediate deposit and trading availability for US residents
- Mobile app trading to commence when liquidity thresholds are reached
- Instant buy feature pending market conditions
Market Impact and Price Action
Following the announcement:
- XRP price surged 72.89% to $0.8154
- Market cap propelled XRP past BNB to become 4th largest cryptocurrency
- Broader market responded with 6.48% increase ($1.26T total cap)
Other major cryptocurrencies also saw gains:
- Bitcoin: +4.13% ($31,580.73)
- Ethereum: +6.58% ($1,995.51)
Potential Future Listings
Gemini exchange has indicated it's "exploring the listing of XRP for both spot and derivatives trading," suggesting more exchanges may follow suit in the coming days.
FAQs About the XRP Relisting
Q: When will trading resume on Coinbase?
A: Trading is expected to begin later today if liquidity conditions are met, with phased rollouts across trading pairs.
Q: Can US residents trade XRP on Kraken?
A: Yes, Kraken has immediately enabled XRP trading for US residents upon meeting basic liquidity requirements.
Q: Why did exchanges delist XRP originally?
A: Exchanges removed XRP due to SEC's lawsuit alleging it was an unregistered security, a claim now partially invalidated by today's ruling.
Q: How does this affect XRP's long-term outlook?
A: The relisting improves liquidity and accessibility, potentially stabilizing XRP's position in the top cryptocurrencies.
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Q: Will other exchanges follow Coinbase and Kraken?
A: Given Gemini's statement, it's likely more exchanges will evaluate listings now that regulatory clarity exists.
Q: What was the key factor in the court's decision?
A: The distinction between institutional sales (which may still face scrutiny) and secondary market transactions proved decisive.