Major cryptocurrency exchanges, including Kraken, Crypto.com, and Bitstamp, have reinstated XRP, Ripple’s native cryptocurrency, on their platforms. This move comes after a positive U.S. court ruling in favor of Ripple Labs and follows Coinbase’s earlier decision to reintroduce XRP.
US Court Ruling Prompts XRP Relisting
The exchanges’ decision to re-offer XRP for trading to U.S. customers is in response to a preliminary verdict in the Securities and Exchange Commission’s (SEC) lawsuit against Ripple Labs. Federal District Judge Analisa Torres determined that XRP cannot be classified as a security by default, except under certain conditions such as when it’s used to gather funds from organizations.
Despite the lawsuit not directly addressing secondary XRP sales, the judgement’s implication—that XRP isn’t necessarily a security—has bolstered the exchanges’ confidence to relist the token.
Marco Santori, Kraken’s Chief Legal Officer, welcomed the court’s decision, stating on Twitter, “We see the Court’s ruling as the initial stride toward substantial legal clarity in the U.S. This clarity allows us to strategize, recruit, and make investments here, in the country of our origin.”
Crypto Exchanges Re-embrace XRP
Many exchanges, including the ones mentioned above, had temporarily stopped XRP trading after the SEC accused Ripple Labs of issuing a security in late 2020. Bitstamp, in an announcement post about XRP’s return, mentioned that the recent court ruling had catalyzed their decision to relist. They added that, after Bitcoin (BTC) and Ethereum (ETH), XRP is the “asset of choice” for their customers, making it an integral part of their platform.
In the wake of the court’s ruling, more exchanges seem poised to follow suit, with Gemini indicating its interest in reintroducing XRP.
Gemini co-founder Cameron Winklevoss stated on Twitter that the judgement could potentially sway the balance of power away from the SEC’s efforts to regulate the crypto sector. “This is a landmark moment that relegates the SEC to traditional finance and renders it an antiquated regulator,” he expressed.
Market Reaction: XRP’s Price Skyrockets
The decision to reintroduce XRP has significantly driven up its price. At the time of reporting, XRP’s value had skyrocketed to nearly 78 cents—representing a 64.8% surge within a 24-hour period, as per CoinGecko data.
The overall crypto market also appears to be responding positively to the industry’s upbeat mood, with Bitcoin (BTC) and Ethereum (ETH) witnessing a 2% and 6% increase, respectively, over the past day.
