Coinbase, a popular cryptocurrency exchange, made waves in the crypto community by reintroducing support for XRP in New York on May 23. This move allows residents of New York to once again buy and sell the Ripple (XRP) cryptocurrency on Coinbase’s platform. The Chief Legal Officer of Coinbase, Paul Grewal, announced the news, highlighting the collaborative effort with the state to facilitate the return of XRP support for New York-based clients.
New York is known for its rigorous regulatory framework when it comes to cryptocurrencies. In 2015, the state introduced the BitLicense program, which requires digital currency companies to obtain a license before conducting any activities within the state. However, very few companies have managed to obtain these licenses, making it challenging for cryptocurrency companies to operate in New York.
In September 2023, the New York Department of Financial Services removed XRP from its “Greenlist,” which meant that licensed entities in New York could no longer custody or offer services related to XRP without individual approval. This regulatory hurdle has made it difficult for cryptocurrency companies like Coinbase to provide services related to XRP in New York.
Despite facing regulatory challenges in New York, Coinbase initially introduced XRP support in the U.S. back in 2019. However, in January 2021, trading of XRP was suspended due to a lawsuit from regulators against Ripple Labs, the issuer of XRP, regarding the token’s status as a security. Despite reinstating XRP trading later in 2021 after a court ruling clarified that secondary sales of XRP did not constitute securities transactions, trading for New York customers remained unavailable until the recent announcement.
In a recent move, Coinbase also launched a “fast and free” payment service using XRP and USDC stablecoin. This educational resource is designed to help customers understand the benefits of using cryptocurrency for cross-border payments, showcasing the efficiency and cost-effectiveness of cryptocurrency transactions.
As of now, Ripple is trading at $0.5352 with a 24-hour trading volume of $1,439,575,221.18. XRP has seen a 0.59% price increase over the last 24 hours and a 3.64% increase over the past week. With a circulating supply of 55 billion XRP, its market capitalization stands at $29,279,423,909. This development comes on the heels of a similar announcement from the trading platform Robinhood, which recently made Shiba Inu (SHIB) available to trade with New York customers, expanding trading options for users in the state alongside XRP.
Coinbase’s decision to reintroduce XRP support in New York is a significant milestone for the cryptocurrency community, showcasing the exchange’s commitment to navigating regulatory challenges and providing its customers with access to a wide range of digital assets. As the crypto industry continues to evolve, collaborations between crypto companies and regulatory bodies will play a crucial role in shaping the future of digital finance.
