Coinbase cryptocurrency exchange logo on smartphone screen laying on computer keyboard. Source: 24K-Production - stock.adobe.com

Key Takeaways:

Coinbase resumed XRP trading in New York after a nine-month suspension due to regulatory issues.
The decision follows a favorable court ruling for Ripple Labs and regulatory approval by the New York Department of Financial Services.
XRP’s price briefly increased following the announcement but has generally been on a downward trend.

On May 23, Coinbase’s chief legal officer, Paul Grewal, announced that customers in New York can trade XRP again after a nine-month hiatus.

Grewal stated, “XRP trading on Coinbase is available again in NY. We heard you and put in the work in strong partnership with the State. And now the word can be put out—we are back up.”

XRP trading on @coinbase is available again in NY. We heard you and put in the work in strong partnership with the State. And now the word can be put out— we are back up.
— paulgrewal.eth (@iampaulgrewal) May 23, 2024

This decision follows a 2020 lawsuit by the SEC against Ripple Labs, accusing them of selling unregistered securities, which led many exchanges, including Coinbase, Bittrex, and Binance.US, to delist XRP.

In 2023, Judge Analisa Torres ruled that secondary sales of XRP were not securities sales, leading to its relisting on several platforms.

📢 Exciting news for our New York users! XRP (XRP) is now available to NY residents on https://t.co/CD3RBjtMAO & in the Coinbase iOS & Android apps. pic.twitter.com/Nbnqr6BphE
— Coinbase Assets 🛡️📞 (@CoinbaseAssets) May 23, 2024

Despite the court ruling, XRP faced regulatory hurdles in places like Japan and New York.

In September 2023, the New York Department of Financial Services (NYDFS) removed Ripple Labs from its “Greenlist,” causing Coinbase to suspend XRP trading for New York residents.

#XRP available in New York on Coinbase 🏁 https://t.co/eq3bn6pK2B pic.twitter.com/C9uoF22XrD
— 𝗕𝗮𝗻𝗸XRP (@BankXRP) May 23, 2024

Companies in New York must be individually approved by the NYDFS to custody customer assets.

Following the news of XRP’s relisting, its price increased from $0.51 to nearly $0.53, although it has been on a downward trend since reaching $0.74 in March 2024.