Image source: CNBC
In a significant development for the cryptocurrency industry, major exchanges Kraken, Crypto.com, and Bitstamp have announced the resumption of trading for XRP, the native token of the Ripple protocol. This decision comes shortly after Coinbase, one of the leading cryptocurrency exchanges, gave the green light for XRP trading.
The rush to reintroduce XRP to U.S. users follows a partial ruling in the ongoing legal battle between the Securities and Exchange Commission (SEC) and Ripple Lab. Federal district judge Analisa Torres delivered a crucial verdict stating that the XRP token “is not necessarily a security on its face,” except in cases where it is sold to raise funds from institutions.
Although the court case did not directly address secondary sales of XRP, the declaration that the token is not a security has instilled confidence in cryptocurrency exchanges, prompting them to offer XRP once again.
Marco Santori, the chief legal officer of Kraken, expressed optimism regarding the court’s decision, stating on Twitter, “We view the Court’s decision as a first step toward meaningful legal clarity in the US. Clarity allows us to plan, to hire, and to invest in here, where we were founded.”
Following the SEC’s allegations in late 2020 that XRP constituted a security, several exchanges had suspended trading of the cryptocurrency. This move had a significant impact on XRP’s liquidity and overall market sentiment. However, with the recent court ruling, exchanges are now gradually reinstating XRP trading to meet the demand from their user base.
The resumption of trading XRP on these prominent exchanges is likely to reinvigorate the market for the digital asset, potentially leading to increased adoption and investment opportunities. As regulatory uncertainty begins to dissipate, investors and traders can once again access XRP through reliable platforms, fostering a more stable and transparent environment.
It remains to be seen how this recent development will impact the ongoing legal proceedings between Ripple Lab and the SEC. However, the court’s ruling serves as a positive milestone for XRP enthusiasts, as it opens the door for broader acceptance and growth of the cryptocurrency within the United States.
As the crypto industry continues to evolve, regulatory clarity and legal frameworks are crucial for fostering innovation and ensuring the protection of market participants. The court’s decision regarding XRP sets a precedent that may influence future discussions on the classification of digital assets and provide much-needed guidance for both industry players and regulators alike.
